Many precision engineering firms listed in Singapore have been privatised in recent years, such as Armstrong, Fischer Tech, Innovalues, Interplex, etc. Spindex is nearly one of them, as it was the subject of a competitive bid between a holding company privately held by Spindex’s chairman and a private equity fund in 2017.

It was not much of a bidding war, as the chairman soon emerged victorious by increasing his shareholding from 24.4% to 72.4% of the company.

What makes this company so interesting to be the subject of a competitive bid? Let us look at the strengths and risks of this company below.

Strengths

1. Low-Cost Manufacturing Base

Spindex is in the business of precision manufacturing. It manufactures precision parts that are used in printers, cars, washing machines, etc. It has 4 factories located in China (Suzhou and Shanghai), Vietnam and Malaysia. A 5th factory is planned to be built in Nantong, China in 2021. It used to have a factory in Singapore, but has since closed it and moved operations overseas.

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