Most will be familiar with the brand Eu Yan Sang (余仁生), best known for selling traditional Chinese medicine products. Their shops have always been eye-catching thanks to the bright red depicting their brand and the various fascinating ingredients displayed in their stores.
While most are aware that Eu Yan Sang International Limited has always been a family-run business, it seems that might be changing soon. According to a source, the founding family is reportedly considering selling Eu Yan Sang International Limited!
Eu Yan Sang, founded in 1879, has a history of 144 years and has over 170 branches, with 25 clinics specialising in Chinese medicine and 3 medical centers. For most Malaysians, Eu Yan Sang has always been the place to go for traditional Chinese medicine. But, it seems things might be changing for the company itself.
Bloomberg recently claimed that discussions were being held among Singapore-based mid-market private equity firm Tower Capital Asia, Temasek Holdings Pte’s unit Blanca Investments and members of Eu Yan Sang’s founding family to dispose of their majority stake in the company. The consortium has allegedly been working closely with financial advisers on their next actions.
Reportedly, Eu Yan Sang International has been valued at about $800 million (RM3.7 billion). However, negotiations about the deal are still in the early stages, and the consortium allegedly may decide to retain the assets. Notably enough, Eu Yan Sang International Limited was delisted and privatised from Singapore in 2016.
For now, Temasek Holdings Pte has declined to comment on the issue, while Eu Yan Sang International and Tower Capital Asia have yet to respond. Regardless, we await with baited breath to discover who exactly will be taking over Eu Yan Sang International Limited soon.
Sources: Bloomberg, China Press
