SINGAPORE - Private equity firm Northstar Group is considering the sale of Singapore’s Innovalues in a deal that could value the precision machine parts maker at over $500 million, two sources with knowledge of the matter told Reuters.

The Singapore-headquartered company is talking with at least one adviser to explore the potential sale and gauge interest, the sources added, declining to be named as the matter is private.

Discussions are at an early stage and a decision is yet to be made, one of the sources said.

Northstar Group said it is unable to comment on the matter. Innovalues did not respond to a request seeking comment.

Innovalues has manufacturing facilities in China, Malaysia and Thailand and counts the likes of German carmaker Volkswagen and document management company Xerox among its customers, its website shows.

Deal activities by private equity firms have increased in South-east Asia during the region’s post-pandemic economic recovery.

Deal value in the region hit an all-time record high of US$25 billion (S$33 billion) in 2021, more than double that of the year earlier, according to Bain & Company’s 2022 annual South-east Asia private equity report.

Founded in 2003, Northstar Group manages over US$2.5 billion in committed equity capital and invests in growth companies in Indonesia and other countries in South-east Asia, according to its website.

It has raised five private equity funds, whose investors include sovereign wealth funds and family offices, its website shows.

Northstar Group acquired Innovalues in 2016 in a takeover offer that valued the company then at $331.4 million. Innovalues was delisted a year later following the buyout. REUTERS