CSE Global Limited

CSE Global Limited (“CSE”) specializes in implementing mission critical process control and telecommunications systems in the oil & gas, infrastructure (transportation, surveillance) and materials sectors. The company is an industry leader, installing ~70% of the process control system in the Gulf of Mexico with recurring maintenance contracts. It also has long term contracts to manage the Immigration Vehicle Surveillance at checkpoints, Electronic Road Pricing (ERP) system as well as various  projects for government ministries such as the Land Transport Authority (LTA) and the Ministry of Home Affairs (MHA). 

At the time of Quarz’s entry, CSE’s share price has corrected by ~45% since 2015 due to an unanticipated loss of S$16.8m due to an OFAC (Office of Foreign Assets Control) settlement as well as a substantial S$38m write-down of account receivables and intangibles. The substantial correction in CSE’s share price resulted in its net cash position to account for more than 38% of its market capitalization. 

Engagement topics: 

  • Immediate distribution of cash amounting to 10% of CSE’s market capitalization to increase Return on Equity 
  • Commit to pay at least 80% of Net Income as dividend  
  • Target Return on Equity of >10% through the rightsizing of CSE’s US business  
  • Seize growth opportunities in strategic structural growth areas such as ‘Smart City’ initiatives and infrastructure plans to further increase profit 
  • Increase alignment of board, top management and shareholders’ interest through transparent compensation plan linked to shareholders’ return  


  • Serba Dinamilk and later Heliconia (investment arm of Temasek Holdings) took over as the main shareholder and increased the alignment of interest between shareholders and management 
  • CSE committed to a dividend payout strategy 
  • Quarz exited position with a return on investment of 40%