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Family business roundup: Velan invests, CFR buys and the Bakries exit Bumi

Canadian valve maker Velan is investing heavily in Asia to drive growth, CFR aims to crack the African market and the Bakrie family finally get shot of their troublesome Bumi stake.

Canadian valve maker Velan is investing heavily in Asia to drive growth, CFR aims to crack the African market and the Bakrie family finally get shot of their troublesome Bumi stake.

Velan
Velan, the Montreal-based industrial valve manufacturer, has announced it is planning to invest heavily in Asia to further its aim of becoming the world's leading high-tech valve producer.

Much of the $20 million (€15.3 million) the company has earmarked for reinvestment this year will be spent on expanding its plants in China, India and Korea to reduce production costs, said second-gen chief executive Tom Velan.

Velan has 16 plants worldwide and over 2,000 employees – half of which are in Canada.

The company, founded by A K Velan in 1950, had revenues of $500.6 million in 2013, and closed the year with $531 million-worth of orders on its books.

CFR Pharmaceuticals
Chile-based CFR Pharmaceuticals has made a bid for 100% of the shares of South African pharmaceuticals firm Adcock Ingram.

CFR, headed by third-gen chief executive Alejandro Weinstein, has been looking to break into the African market for some time. The deal – which has not yet been accepted by Adcock's shareholders – values the company at 12.9 billion rand (€992.4 million).

CFR plan to finance the deal through a mixture of cash and CFR shares – Adcock is currently listed on the Johannesburg Stock Exchange but would be de-listed if the deal goes ahead.

CFR is one of the largest pharmaceutical companies in Latin America, with revenues of $570.8 million in 2012.

Bumi
Indonesian coal tycoon Samin Tan has agreed a deal to buyout the Bakrie family from the coalmining venture – Bumi – they co-founded with Nat Rothschild.

The $223 million deal for the 24% stake will raise Tan's stake to 47.6%, held through his mining company Borneo Lumbung Energi & Metal.

Three-year old Bumi has had a troubled start – relationships between the founders quickly turned sour, leading to a series of court cases.

Rothschild, who has a 14.8% stake in Bumi, was reportedly opposed to the sale, arguing Tan will be able to control the company without ever making a takeover offer to minority shareholders.

He said minority shareholders should also have the option to buy the Bakrie family's stock.   

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