Northstar buys 49% stake in Trimegah Securities
Northstar Pacific Partners has acquired a 49% stake in Indonesian brokerage Trimegah Securities for IDR200 billion ($20.8 million). The investment was channeled through Northstar Equity Partners III, which closed last year at $820 million.
According to a regulatory filing, Advance Wealth Finance, a subsidiary of the fund, purchased 1.7 billion shares in Jakarta-listed Trimegah at IDR117.7 apiece. A portion of the shares are said to have come from Spinnaker Capital.
AVCJ Research's records show that the hedge fund paid IDR196.6 billion for a 25% stake in Trimegah in 2007. Spinnaker acquired its stake from Malaysia's United Investment.
"Northstar believes in the strong macroeconomic outlook for the brokerage and asset management business in Indonesia, and sees long-term potential for Trimegah," the private equity firm said in the statement. "It is confident that the existing management team will be able to take the company to the next level."
Trimegah, which was founded in 1990 and went public in 2000, provides equity and debt capital markets services and investment banking and financial advisory services to retail and institutional clients. It has 18 offices in 14 cities throughout Indonesia.
The company reported a net loss of IDR17.2 billion for the nine months ended September 2012, compared to a profit of IDR9.8 billion for the same period one year ago. The deficit was due to revenue falling to IDR108.8 billion from IDR121.3 billion as a 50% increase in investment management fees failed to counteract sharp drops in brokerage commissions, dividend and interest income, and underwriting fees.
Other investments in Northstar's third fund include the acquisition of a 20% stake in tire manufacturer Multistrada Arah Sarana for $78 million and a $200 million investment in Triputra Agro Persada, an Indonesian oil producer, alongside Government of Singapore Investment Corp. (GIC).
The Indonesian private equity firm has also agreed to buy a controlling 50.05% stake in Nera Telecommunications from power conversion specialist Eltek and is offering to buy the entire company for S$177.3 million ($145 million). This is the GP's first foray into the Singapore market.
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