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CVC ropes in Temasek, AIG for Matahari sale - report

  • Alvina Yuen
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CVC Capital Partners is reportedly roping in Temasek Holdings and American International Group (AIG) as cornerstone investors for its $1.5 billion partial exit from Indonesia's Matahari Department Store. The size of the offering could represent as much as 40% of the company’s shares.

The talks are preliminary and no parties have made any commitments, a person with knowledge of the matter told The Wall Street Journal.

CVC paid $633 million for a 72.6% stake in early 2010 from Matahari Putra Prima, a company controlled by the Riady family's Lippo Group. The transaction was structured as a joint venture, with Lippo Group spinning off its 98.15% holding in the company into a joint venture that is 80%-owned by CVC.

In October, CVC was said to have appointed CIMB, Morgan Stanley and UBS to manage the sale of its majority stake in the company. The sale was expected to happen in the first half of 2013.

Matahari is Indonesia's largest department store chain and its fourth-largest retail brand by sales, after convenience store chains Alfamart and Indomaret, and French hypermarket chain Carrefour. It operates 109 stores nationwide.

Matahari reported a net profit of IDR630 billion ($65.3 million) for the nine months ended September, up 77% from the same period a year earlier.

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