CVC secures partial exit from Indonesian sports retailer

A total of 648.5 million shares were sold, according to a filing. The private equity firm offloaded 627.1 million shares for IDR6,500 apiece, reducing its stake in MAP Aktif from around 29.5% to 7.5%. The company sold an additional 21.4 million shares for the same price.

CVC subscribed to INR1.5 trillion in bonds issued by MAP Aktif in March 2015 and received an option for a 30% stake in the company. Debt that converts to equity on listing is a common investment structure for private equity firms in Indonesia.

MAP Aktif duly went public in July of last year, raising IDR897.9 billion through the sale of 427.6 million shares at IDR2,100 apiece. CVC exercised part of the option at the time of the listing – taking a 14.85% stake, or the bulk of the shares made available through the listing – and the rest ahead of the most recent transaction.

The private equity firm’s exit follows a 117% ramp up in MAP Aktif’s stock during the first quarter of 2019. It peaked at IDR8,675 in early April but soon fell back. MAP Aktif ended April 11 at IDR6,325, down 13.6% for the day. CVC still owns around 214 million shares worth IDR1.35 trillion.

These transactions are often referred to as re-IPOs because limited liquidity on the Jakarta Stock Exchange makes it difficult to raise significant amounts of capital in one go. Following MAP Aktif’s 2015 listing, the public float was 2.85 billion shares, but 98% of that was held by Mitra Adiperska – its parent company – and CVC. The float is now slightly larger, and ownership is more widely dispersed.

CVC took a similar approach with two of its other Indonesia investments. Matahari Department Store was already listed when the private equity firm took a majority stake in 2010, but the public free float was tiny. CVC and Lippo Group sold a 46% interest for $1.3 billion in 2013 and there were further sell-downs over the next two years.

Broadband and cable TV provider Link Net was still private in 2011 when CVC invested through a share and bond issue. The company listed in June 2014, but Lippo and CVC still held 90% of the shares. Four months later, they sold a 30% interest for IDR5.5 trillion. The private equity firm reduced its holding from 49% to 33.4%. As of December 2018, it still held the position.

MAP Aktif claims to be Indonesia’s leading sports retailer with 1,074 stores across 74 cities at the end of last year. Most of its sales come from multi-brand stores, ranging from specialist retailers Golf House, Soccer Station and The Athlete’s Foot to generalists like Planet Sports and Royal Sporting House. There are also concept stores for individual brands as well as e-commerce platforms.

The company booked revenue of IDR6.25 trillion in 2018, up from IDR5.1 trillion the previous year. Over the same period, adjusted EBITDA rose from IDR742 billion to IDR1.01 trillion, while net profit increased from IDR292.6 billion to IDR353.3 billion.

Parent company Mitra Adiperska has over 2,200 outlets in Indonesia covering fashion, food and beverage, children’s wear, department stores, and sports. General Atlantic invested IDR1.1 trillion in one of its food and beverage unit in 2016. The business, which holds the franchise rights to brands like Starbucks, Pizza Express, and Krispy Kreme, listed in 2017. The public free float is approximately 1%.

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• Topics
• Southeast Asia
• Consumer
• IPO
• Indonesia
• CVC Capital Partners
• Exit