China's DCP Capital aims to sell Singapore tech firm MFS for at least $740m: Sources

The sale by DCP Capital is targeting primarily financial sponsors, but also strategic buyers. PHOTO: AFP

HONG KONG - Chinese private equity firm DCP Capital aims to sell its Singaporean portfolio firm MFS Technology, which makes flexible printed circuit boards, for at least US$550 million (S$740 million), two people with knowledge of the matter told Reuters.

The firm, founded by former KKR & Co dealmakers David Liu and Julian Wolhardt, started marketing the sale on Friday.

It will send out a confidential information memoranda next month, one of the sources said.

The sale is targeting primarily financial sponsors, but also strategic buyers, according to the two sources and a separate person with knowledge of the transaction.

Initial bids are expected by late May, one of the sources said.

BDA Partners and Jefferies are advising DCP on the sale, the sources said. All of the sources declined to be identified as the information was confidential.

DCP Capital and BDA Partners declined to comment. MFS and Jefferies did not immediately respond to a request for comment.

The Chinese firm bought a controlling stake in MFS in 2018 from Navis Capital Partners and Novo Tellus Capital Partners for an undisclosed amount.

Founded in 1989, Singapore-headquartered MFS manufactures circuit boards with applications focused on automotive, industrial, medical and data storage end-markets.

It manufactures in China and Malaysia, and has sales teams in Germany and Canada, its website shows.

In 2022, the company’s earnings before interest, taxes, depreciation, and amortisation totalled US$46 million, said one of the sources.

DCP was set up in 2017 by Mr Liu, who was KKR’s head of Greater China and a co-head of its Asia private equity business, and Mr Wolhardt, a senior KKR executive in the region, after both worked with the US buyout firm for 11 years.

DCP raised US$2.5 billion in its maiden fund in 2019, focusing on China investments. REUTERS

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