Carlyle, Affinity Through Second Round for YTY

Private equity firms Carlyle Group and Affinity Equity Partners are through to the second round of bidding for Malaysian glovemaker YTY group, Reuters reported. The company is valued at roughly $330 million. Buyout shop EQT did not make it through to the second round. YTY manufactures medical gloves.

(Reuters) – Private equity firms Carlyle Group [CYL.UL] and Affinity Equity Partners are through to the second round of bidding for unlisted Malaysian glovemaker YTY group, a source with direct knowledge of the matter told Reuters on Thursday.

Final bids for the company, valued at about $330 million, are due in mid-April, the source added. Stockholm-based private equity firm EQT did not to make it to the second round, the source added.

“Judging from the first round bids, the final price won’t be much higher than a billion (Malaysian) ringgit ($330 million),” the source said.

That values YTY, which makes medical gloves and earns 78 percent of its revenue from the U.S., at about 10 times reported 2010 earnings of 100.5 million ringgit, according to YTY’s draft IPO prospectus.

YTY, the country’s second-largest maker of nitrile gloves, a synthetic alternative to rubber, was considering a public listing before opting for a sale.

Private equity firms are increasingly eyeing assets in Southeast Asia though they have had mixed success in the region.

Earlier this year, glove manufacture Latexx Partners received an 852 million ringgit takeover offer from Navis Capital, a Malaysia-based private equity firm.

In Malaysia, bids from private equity firms CVC [CVC.UL] and the Carlyle Group [CYL.UL] for QSR Brands were turned down last December despite offering an attractive price for the company.

They had also failed to make it the last round of bidding of the $2 billion San Miguel Pure Foods sale in Philippines before the deal was later pulled.

YTY was not available for comment when contacted by Reuters.

Nomura Holdings CIMB are advising YTY on the auction.

The source was not authorised to talk to the media. CIMB declined to comment. Nomura, Carlyle and Affinity were not immediately available for comment.

(Additional reporting by Stephen Aldred and Saeed Azhar; editing by Elaine Hardcastle)