Morgan Stanley Private Equity Asia (MSPEA) announced yesterday its acquisition of a 19.9 percent stake in CTCI Corp (中鼎工程), Taiwan’s leading engineering, procurement and construction firm. The deal marked the private equity fund’s first investment in Taiwan, the company said yesterday.
Investing in Asia since 1993, MSPEA has been an active private equity investor with more than US$650 million invested in companies in China, Korea and Singapore.
“This investment further demonstrates Morgan Stanley’s confidence in Taiwan. It reflects our belief that the fundamentals of the local economy are strong and that Taiwan presents an extremely compelling investment environment for our businesses,” Susan Lin (林水仙), chief executive officer of Morgan Stanley Taiwan, said in a statement released yesterday.
“We are delighted to have concluded this transaction and will continue to look for other investment opportunities in Taiwan,” she said.
CTCI is Taiwan’s largest engineering, procurement and construction company and among the largest in Asia.
The company has a strong market position in Taiwan and has branched into overseas markets including China, Southeast Asia and the Middle East.
“We look forward to working closely with CTCI Chairman, John Yu (余俊彥), and the rest of the management team to leveraging the global resources of Morgan Stanley to assist the company in its growth plans,” MSPEA’s Managing Director and Head Chin Chou (周玄沁) said.
Meanwhile, Yu said that the company would be able to utilize the MSPEA’s global expertise and franchise to create real value for the company and its shareholders.
“This is particularly relevant today, as the prospects of the industry are very favorable throughout Asia and the Middle East,” Yu said.