Transpac Capital is one of the oldest, largest and most prominent private equity investment firms in Asia. It was the first to establish a fully integrated investment operation spanning the entire region, with seven offices in Singapore, China, Hong Kong, Malaysia, Taiwan and U.S.A., and plans for additional offices in other Asian business centres.

Transpac invests in the Asia-Pacific region in private manufacturing and service companies with high growth potential. Its professional staff combine local country expertise with a common regional perspective. They have experience in a broad range of industries and markets, and most senior managers have headed manufacturing and/or service enterprises. Transpac's non-executive directors, who closely support management, are all corporate leaders in their respective countries.

Transpac was formed at the end of 1989 by integrating the operations and staff of two of the longest-established Asian venture capital management firms: Transtech Venture Management Pte Ltd of Singapore and Techno-Ventures Hong Kong Limited ("TVHK"). Transtech was established in 1986 by DBS Bank and the NatSteel Group; TVHK by Dr. Christopher Leong and Dr. Victor Fung.

As of December 2000 Transpac manages about US$820 million of aggregate capital in fourteen funds and special investment programs including Transpac Industrial Holdings Limited, the only investment company listed in the Stock Exchange of Singapore; as well as programs targetting Singaporean and Japanese interests in Asia. It has invested in about 202 companies in East Asia and the United States, many of which have achieved public listings.

Transpac's Strengths

In pursuing its goal of a superior return for its investors, Transpac can draw on the following strengths:

-  Broad regional coverage. Transpac has seven offices, each staffed locally, and will continue to expand as appropriate.

- Unified management team. All Transpac managers share the responsibilities and rewards of investment regardless of location. Real-time computer linkage of all offices, backed by a proprietary deal database, permits rapid, informed response.

- Size and diversity of professional staff. Transpac has about 30 investment professionals with extensive experience in production, marketing, engineering, general management, banking and finance.

- Strong backing. Among other corporate linkages and connections, Transpac enjoys the backing of DBS Bank and the NatSteel Group of Singapore, and of the Li & Fung Group of Hong Kong.

- Amount of funds under management. The size of the funds under its management permits Transpac to make substantial investments (while maintaining diversity) and to exert influence on behalf of its portfolio companies.

- Size of portfolio. Transpac's large portfolio means strong potential for mergers, acquisitions and other synergies among portfolio companies, both within and across national boundaries.

Value-Added To Portfolio Companies

Transpac Capital is an active investor, working with portfolio companies to advance their growth and other goals. In addition to providing capital, Transpac is in a position to assist portfolio companies in a number of ways, including:

- financial and strategic planning
- recruitment of key personnel
- obtaining bank and other debt financing
- access to international markets and technology and to strategic partners or acquisitions
- assisting in formulating strategies during changes both in market conditions as well as in government policies and regulations in the region
- regional expansion of manufacturing and marketing operations
- negotiating and executing mergers and acquisitions
- obtaining a public listing.

Transpac's capital and other support can further the goals of the following types of companies and their owners:

- profitable companies seeking to accelerate growth and expand geographically
- start-up and early stage companies seeking to commercialize outstanding marketing concepts and technological innovations
- established companies seeking to form joint ventures in the region
- management buyouts and buyins.

Transpac is also in a position to create linkages between portfolio companies and its own corporate and institutional investors by inviting these investors to co-invest where appropriate. Such co-investment can both further the development of portfolio companies and give Transpac investors from outside the region a first-hand view of Asian business.

Investment Policies

Transpac's investment objective is to maximize the return to investors in its funds while at the same time benefitting the other shareholders of its portfolio companies. In building and managing a diversified portfolio of high-growth companies, it observes the following general policies:

Target Region
Transpac's geographical focus is on East Asia (excluding Japan), with special emphasis on China, Hong Kong, Indonesia, Malaysia, Singapore, the Philippines, Taiwan and Thailand. Future focus will include India and Indochina.

Target Industries
Transpac invests primarily in manufacturing companies and in industry- and consumer-related service companies. Targeted sectors include industries and services related to information and communication, electronics, industrial products, consumer products, health care, chemicals, and food and the environment.

Target Stage of Development
Transpac invests in companies at all stages of development, from start-up to growth capital and buyout. Most investments, however, are in high growth, profitable companies with a proven track record.

Size of Investment
Investments in individual companies can range from US$1 million to US$50 million, although most investments now exceed US$10 million.

Form of Investment
All Transpac investments involve equity participation, although they may take the form of convertible debt or a combination of debt and equity. All investments are long term in nature (normally 3 to 7 years). Transpac usually takes a lead position in portfolio companies, including being the majority shareholder where appropriate.

Investment Criteria
When considering investment in a company, Transpac looks for
- management integrity, ability and experience
- market size and growth potential
- product quality and/or development capability
- strategic match of product, production environment and market
- reasonable entry price and terms
- clear exit opportunities.

Participation in Management
Transpac is generally represented on the board of directors of portfolio companies. Board representation permits Transpac to keep informed as to the company's needs, and gives the portfolio company direct access to the resources of Transpac Capital. Transpac does not get involved in the day-to-day management of portfolio companies except where required. It believes in backing strong management teams that require little outside supervision.

 
Transpac Portfolio

Below is a representative sampling of companies Transpac invests in:

Technology:
Microelectronics:

- Acer: the largest computer and electronic component manufacturer in Taiwan, listed on TSE.
- AFOP: a leading fiber optics connector and fuse fiber component manufacturer with operations in the US and Taiwan.
- AEM/Ever Technology: a leading semiconductor equipment manufacturer in Singapore.
- ESS: a sound chip designer in Hong Kong and USA, listed on Nasdaq.
- Mustek: one of the leading scanner & imaging product manufacturers in Taiwan, listed on TSE.
- Subtron: a Taiwanese based substrate supplier of chip scale packaging and BGA packaging for the IC packaging industry.
- UTAC: a semiconductor wafer testing and assembly house in Singapore.
- Varitronix International: one of Asia’s leading LCD manufacturers, listed on HKSE.

Information Communications:

- C&T: a telecommunications systems integrator based in Hong Kong, listed on HKSE.
- Datacraft Asia: the largest independent Asian distributor and integrator of data communication equipment, listed on SGX.
- Eastern Multimedia: the largest multiple system cable TV operator in Taiwan.
- Ednovation: a Singapore company that designs and operates multimedia educational programs and centres for children.
- IIN: an internet content provider with a development base in China to operate an internet education portal and a Chinese medical information portal.
- Systex: a financial systems software and data service company in Taiwan, listed on TSE.
- Tecom: one of the leading telecommunication equipment producers in Taiwan, listed on TSE.

Life Sciences:

- Ethypharm (Hong Kong) Limited: a joint venture with Ethypharm of France to manufacture and market timely delivery of drugs in China.
- Oculex Pharmaceutical: a US company with a Singapore subsidiary that develops and manufactures innovative drug delivery systems to the eyes.
- Sciclone: a Hepatitis-B curative pharmaceutical company with clinical trials in Singapore and Taiwan, listed on Nasdaq.
- Medical Imaging Australiasia: one of the largest medical diagnostic groups in Australia, listed on ASX.

Cross-border establishments:

- Aspen Technology/Aspen Technology Asia: a simulation software company servicing the chemicals industry, listed on Nasdaq.
- Bukaka Singtel International: a joint venture between PT Bukaka Teknik Utama of Indonesia and Singapore Telecom International to operate the telephone network of East Indonesia.
- Lee Chi/Lee Chi International: one of the largest bicycle parts manufacturers in Taiwan duplicating its success in China, listed on TSE.
- TTV: establishment of a distribution network in China for Merck  Sharp & Dohme. Sold to Merck.

Buyout and restructure:

- Natsteel Broadway: corporatization of a leading Hong Kong consumer electronics contractor, listed on SGX.
- Foodstar: one of the largest processors of seasonings and food ingredients in China through restructure of state-owned enterprises.
- Gul Tech Technologies: management buyout of the Singapore PCB operation of Data General, listed on SGX.
- Neo Neon: world's leading manufacturer of rope light based in Hong Kong and China.
- Yangtze Cement Holdings: a Singapore holding company established jointly with Holderbank, the largest cement group in the world, to invest in cement plants in China.

 
Public Listings
By December 2000, 56 portfolio companies had obtained public listings or had been merged into public companies, including:
Australia:
Medical Imaging Australiasia Limited - July 2000
Hong Kong:
Varitronix International - July 1991
CCT Telecom Holdings - November 1991
Innovative International (Holdings) - November 1991
Tingyi - February 1996
LifeTec - January 1997
Computer and Technologies - May 1998
Hang Fung Gold Technology - March 1999
Malaysia:
Plastic Centre - merged into Advanced Synergy Bhd in November 1994
Singapore:
Proteq Technologies - merged into Acma Electrical in 1989
Hwa Tat Lee - September 1993
Datacraft - April 1995
Roly International - February 1996
NatSteel Broadway - October 1996
Mansfield - merged into Magnecomp & listed in Jan 1998
Tastyfood Holdings - July 2000
AEM-Ever Technology - December 2000
Taiwan:
Acer - November 1988
Tecom - November 1991
Master Home Furniture - August 1992
Lee Tah Farm Industries - December 1993
Grand Cathay Securities - April 1995
Lee Chi - April 1995
Systex - August 1995
Must Systems - January 1997.
United States:
BMC Software -  August 1988
Immunogen - November 1989
Goal Systems International - 1990
Sequoia Systems - March 1990
Verifone - March 1990
Digital Research - merged into Novell in October 1991
SciClone Pharmaceuticals - March 1992
ESS Technology - October 1995
 

China Chief Representative
Wang Qian ? China Chief Representative
Mr.Wang has a Degree in Engineering from the Huazhong University and a PhD in Engineering from the University of Tsukuba, Japan.  Prior to joining Transpac, he was a Senior Manager with NEC China in the planning division where he co-ordinated NEC's joint ventures in China.  Prior to that he was in the mobile communication division where he conducted market research and trial runs in China.  He also worked as a Researcher in Electrotechnical Lab, Japan.

Offices
Transpac Capital Pte Ltd
Beijing Representative Office
Unit 620, China World Tower 1
World Trade Centre No. 1, Jianguomenwai Avenue
Beijing 100004 People's Republic of China
Tel: (86-10) 6505 5208
Fax: (86-10) 6505 5219