Food Empire Holdings, a Singapore-based multinational food and beverage manufacturing and distribution group, has secured $40 million from private equity fund Ikhlas Capital Singapore Pte. Ltd.

Food Empire said in a statement on Monday that the company has entered into a non-binding term sheet with Ikhlas Capital for the establishment of a strategic partnership, and the proposed issuance of redeemable exchangeable note (REN) of up to $40 million to Ikhlas Capital.

The investment will be made into a special purpose vehicle (SPV) wholly owned by the company that will hold or possess the option to hold a portfolio of business operations, including the company’s Southeast Asian and South Asian business.

According to the statement, the rationale for the strategic partnership is for the group to work with Ikhlas Capital to develop and expand its business in Southeast Asia and South Asia.

Ikhlas Capital will inject an initial capital of $40 million for this strategic partnership into the SPV that will hold or possess the option to hold a portfolio of business operations including the company’s Southeast Asian and South Asian business, via a 5-year REN and a 5.5 percent annual interest based on terms and structured to be finalized in a definitive agreement.

The proceeds will drive capital expenditures and mergers and acquisitions in these regions.

Ikhlas Capital will have the right to exchange the REN into new shares of the company at a share price of S$1.09 ($0.81) per share and such new shares are to be listed on the Singapore bourse.

Food Empire believes that, beyond capital injection, Ikhlas Capital’s local presence, knowledge, and network in Southeast Asia will help the Group further accelerate growth and scale in Southeast Asia and internationally.

Listed in Singapore, Food Empire has a portfolio spanning instant beverages, snack food, and a growing presence in food ingredients.

Its products are sold in over 60 countries across North Asia, Eastern Europe, South-East Asia, South Asia, Central Asia, Middle East, and North America.

The firm has eight manufacturing facilities in five countries and 23 offices worldwide.

It offers a range of branded beverages and snacks, including classic and flavoured coffee mixes and cappuccinos, chocolate drinks, fruit-flavoured teas, bubble tea, instant cereal blends, and crispy potato snacks.

It owns a family of proprietary brands including MacCoffee, Café PHO, Petrovskaya Sloboda, Klassno, Hillway and Kracks. MacCoffee.

Ikhlas Capital is an ASEAN private equity fund manager focused on growth, transformation and cross border value creation.

The founding partners of the firm, Nazir Razak, Kenny Kim, Gita Wirjawan and Cesar Purisima, are well-known ASEAN professionals who have spent a combined total of more than 100 years of their careers in the region and are highly recognized leaders in their respective professional fields and countries.

Investors of the firm include over 50 ASEAN institutions and family offices.

The firm is licensed by the Monetary Authority of Singapore and has on-ground presence in Singapore, Kuala Lumpur, Jakarta and Manila.

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