CVC considers Matahari share sale – report

According to The Wall Street Journal, the sale is scheduled for next year, but it offered no details on how much of CVC's holding would be exited or how much could be raised.

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

Thanks to strong growth - the economy expanded 6.5% last year and the World Bank projects 6% in 2012 and 6.4% in 2013 - rising per capita incomes and domestic demanding accounting for at least 60% of GDP, Indonesia's middle class has become a key target for private equity investors. Although Matahari's first-half net profit fell 39% year-on-year to INR157.46 billion amid rising competition, its stock is up 13% so far in 2012.

Only 1.8% of Matahari is publicly traded. CVC acquired a 72.6% holding in the asset, which accounted for the bulk of parent company Matahari Putra Prima's majority stake. The two parties agreed to enter into a partnership structure, with Lippo Group-controlled Putra Prima placing its entire holding into a joint venture, of which it owns 20% to CVC's 80%.

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• Topics
• Southeast Asia
• Consumer
• Portfolio management
• CVC Capital Partners
• Consumer
• IPO
• Indonesia