Amtek Seeks New Markets to Expand as Main Owners Mull Sale

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Amtek Engineering Ltd., a Singapore-based maker of components for Tesla Motors Inc., is looking to markets outside Asia as its majority shareholders consider a possible divestment.

Amtek, which renamed itself Interplex Holdings Ltd. on Friday after a subsidiary it acquired last year, will focus on Latin America while boosting research and development services, Chief Executive Officer Daniel Yeong said.

“We are at the beginning, not the peak,” Yeong said in an interview in Singapore. “The combination of Amtek and Interplex has created a new landscape for growth.”

With more than half of the company’s revenue coming from Asia, Yeong is looking abroad as growth in China slows. Amtek has worked with customers to design and build their products since 2008 to secure contracts from those in need of smaller quantities of customized parts that larger manufacturers would reject.

CVC Capital Partners and Standard Chartered Private Equity, which own a combined 58 percent stake valued at S$212 million ($159 million) at Amtek’s close in Friday, are exploring a sale of their stake, people with knowledge of the matter said. The private equity firms may wait until Interplex is fully integrated before actively seeking buyers, one of the people said.

The stock rose 6.7 percent at the close in Singapore today, the biggest jump in a month. The stock has gained 25 percent this year, compared with a 1.5 percent decline in the Singapore benchmark Straits Times Index.

Doubling Sales

Yeong has said that he plans to double sales to $2 billion in five to seven years through acquisitions. The company will attract a lot of buyers if CVC and Standard Chartered want to sell because of its growth prospects, Yeong said.

Profit surged more than fivefold in the three months ended March with contributions from Interplex and as it became more efficient, the company said.

“The acquisition of Interplex has increased their exposure to the U.S., which is currently one of the stronger parts of the economic recovery, and they have benefited from the recovery from there,” said Loke Chunying, an analyst at UOB Kay Hian, who recommends buying the stock.

Growth in the coming years will come from markets such as Latin America and Europe, Yeong said.

Interplex’s Mexico factory will pave the way for expansion into South America. “We have already signed contracts for 2016 and 2017 to build some of our products there,” Yeong said. “These are markets that we have never done business with.”

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