CVC invests $155m in Indonesia gas company

The private equity firm is investing via its fifth fund, which closed on USD 4.5bn in 2020. The fund was nearly 90% deployed as of January when its successor hit a first close of USD 3.5bn against a target of USD 6.5bn.

CVC said it was taking a significant minority stake in Samator. The Harsono family will continue to hold a majority stake in the company and retain control.

Shares in Samator have traded in a range of IDR 1,700 to IDR 2,500 for the past year. The stock, which was worth around IDR 400 as recently as three years ago, closed at IDR 1,910 on March 15. This gave the company a market capitalisation of IDR 5.9trn (USD 381m).

The plan includes allocating up to IDR 600bn for a new plant. Construction is expected to begin within the month and continue until the end of next year.

KCC Glass Corporation, a Korean glass manufacturer expanding in Southeast Asia, has been secured as the first customer for the plant’s expected output. There are also plans to serve the electric vehicles industry.

Samator aims to grow sales at a rate of up to twice the national GDP growth rate and wants to achieve a double-digit net profit margin through operational optimisations, as well as strategic commercial initiatives. It said it would consider various organic and inorganic growth strategies.

This is CVC’s eighth investment in Indonesia since 2010. The most recent activity includes acquiring an 18.3% stake in cheese maker Prochiz for about IDR 306bn in July last year.

“We have identified the best partner for Samator Indo Gas. CVC’s successful track record in both Indonesia and the global industrial gas industry will bring significant benefits to the company as well as its stakeholders,” Imelda Harsono, a director at Samator, said in a statement.

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• Topics
• Southeast Asia
• Industrials
• PIPEs
• Expansion
• Indonesia
• CVC Capital Partners
• resources
• manufacturing