Pursuing the Elixir of growth

ON the surface, shareholders of Willowglen MSC Bhd, a provider of technology solutions such as industrial automation and remote monitoring solutions, are getting a pretty good offer from Singapore-based private equity firm PrimeMovers Equity (S) Pte Ltd (PME), whose special-purpose vehicle, Elixir II Pte Ltd, is proposing to buy the company’s core business in a cash-and-share deal worth RM215.2mil.

The offer also values the business well above Willowglen’s market capitalisation as of April 2, 2026 of around RM141mil.

The deal will net Willowglen immediate cash proceeds of RM112mil and also see the company take a meaningful stake in Elixir II of 37.8% equity interest.

Elixir II also includes the Excel Marco group, a provider of technology solutions that complements Willowglen’s core business. The reasoning behind the deal is that the enlarged outfit will have a bigger regional footprint and the ability to secure larger and complex contracts.

Elixir I Pte Ltd, a wholly owned unit of PME, will end up owning just under 61% of this enlarged outfit.

Willowglen shareholders will get a dividend windfall of five sen per share within two months should the deal go through, as RM24.2mil of the cash proceeds have been earmarked for this. Willowglen will use the remaining RM86mil to acquire new businesses as it intends to maintain the company’s listing status.

The only caveat is that, as part of the deal, Elixir II will require financial assistance, and this will come from the shares that Willowglen is getting in Elixir II, which will be pledged to a bank as a share charge, as will the shares of Elixir I.

This assistance will help Elixir II borrow S$35mil to help pay for the transaction. Shareholders will need to scrutinise and weigh whether this deal is good for them, as this share charge will remain in effect until Elixir II has fully settled the banking facility, after which these shares will be released to Willowglen free of encumbrances.

But what happens till then? What benefits can Willowglen reap from this deal?