AP Provides Equity Valuation for proposed Takeover of Light Engineering Ltd by GP Industries Ltd in Singapore

Ascent Partners is proud to announce that we recently provided the Equity Shareholding Valuation for the proposed GP Limited acquisition of Light Engine Technologies Ltd, set to be put to shareholders in a virtual EGM on December 30.

The value of the acquisition is HK$1.224 billion.

Led by William Yuen, Director and Paul Wu, Principal of Ascent Partners, we were engaged to appraise the fair value of the 100% equity interest in the Light Engine Group. Ascent Partners were engaged due to our relevant market and industry knowledge in the Asia-Pacific region.

GP Industries Limited is an investment holding company engaged in the development, manufacture and marketing of a range of products, including electronics and acoustics. It operates under three segments: Batteries, Electronics and Acoustics, and Other Industrial Investments.

The Light Engine Group is principally engaged in the development, manufacture and sales of light-emitting diode (“LED”) lighting products and modules for the following products/applications:

A            horticultural lighting solutions for the grow light market;

B             commercial and hospitality;

C            health care; smart cities and internet of things (“IoT”) lights;

D            and printed circuit board assembly (“PCBA”) / module lights.

Ascent Partners adopted the income approach to estimate the equity interest in the Light Engine Group.

Ascent Partners ascertained the enterprise value of the Light Engine Group through the application of the market value weighted average cost of capital (“WACC”) to discount the free cash flows to Light Engine (“FCFF”).

The WACC was calculated by considering the relative weights of each component of the capital structure. The enterprise value of the Light Engine Group was then adjusted for operating debts, cash and cash equivalents, non-operating assets, and non-operating debts and liabilities to derive the fair value of the equity interest in the Light Engine Group.

Ascent Partners is delighted that we worked successfully with both parties to achieve a fair equity valuation.

For more detailed information on the proposed acquisition, please visit the SGX circular website here.

For more information on Ascent Partners, please visit here.