Baring-backed Courts Asia targets $112m IPO

According to the prospectus, four cornerstone investors - JF Asset Management, New Silk Road Investment, Target Asset Management and Value Partners Hong Kong - are taking up 44% of the offering, with CEO Terence O'Connor and CFO Kee Kim Eng covering 8%.

In 2007, Asia Retail Group (ARG), a company controlled by BPEA, acquired a 54.2% stake in Courts for S$56.2 million and purchased the remainder of the company in 2008, taking it private. The private equity firm owns 32.8% of ARG, with the subsidiary of a Kuwaiti company holding another 32.8%, while Standard Bank and Deutsche Bank have stakes of 25% and 9.4%, respectively.

BPEA has agreed to buyout Standard Bank and Deutsche Bank's interests, and then ARG will then divest 31.8% of its 100% holding in Courts via the IPO.

Courts last attempted a listing in 2010 but withdrew the offer due to valuation concerns. Prior to that, BPEA put Courts on the block for $300 million, but there were no takers. Last year it attempted another trade sale, with Hong Kong conglomerate Swire reportedly interested in acquiring the asset for around $400 million. However, no deal emerged.

Courts has 13 stores in Singapore and 55 in Malaysia. Over the next 2-3 years it plans to add an average of six outlets per year in Malaysia and one per year in Singapore. The company also wants to enter Indonesia and expects to open its first store in Jakarta in 2014.

Courts reported revenues of S$724.2 million for the year ended March 2012, up 7.4% year-on-year. Net profit increased 2.2% to S$39.4 million.

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• Topics
• Southeast Asia
• Exits
• Consumer
• Baring Private Equity Asia
• Exit
• IPO
• Consumer
• Singapore