0 CVC to Keep Hold of Matahari

CVC Capital Partners, one of the world’s leading private equity firms, has revealed it aims to maintain control of Indonesia’s Matahari Department Store after it completes a share offering in the retailer. Reuters reported last week that the London-based private equity firm had launched an up-to-$1.36 billion offering of shares in MDS, according to the term sheet. 

CVC is seeking to capitalize on strong investor appetite for consumer stocks in Indonesia and use the momentum to partially cash out of MDS, one of its most profitable investments in the region, after holding the shares for several years. CVC led a group that acquired MDS in 2010 for $790 million. It is now making a partial exit when MDS is valued at $3.4 billion, according to Reuters calculations. 

Fock Wai Hoong, managing director of CVC Asia Pacific, told the Jakarta Globe the share sale was intended to boost liquidity in Matahari’s market position. “One of the reasons we are proceeding with the share offer is we have had the company for three years already,” he said. “It is a good time to monetize our asset, but despite all that, we want to — within our consortium — still maintain control.” 

Fock remained tight-lipped on how much would be generated by the share offer, saying only that the detail would be “in the prospectus.” Terms stating share pricing will be set on Thursday, with settlement to come seven days later. Investors are increasingly attracted to Indonesia’s rapidly growing economy and expanding middle class, with the country expected to add 90 million people to its consuming class by 2030, according to McKinsey & Co. data. CVC hired CIMB Bank, Morgan Stanley and UBS last year to manage the sale.

Additional reporting from Reuters
source : the jakarta globe