CVC opts for partial exit from Matahari via public markets – report

According to Bloomberg, the share sale - potentially Indonesia's largest stock offering in five years - could take place as soon as March. It would value Matahari at more than $3 billion.

CVC bought a 72.6% stake in early 2010 from Matahari Putra Prima, a company controlled by the Riady family's Lippo Group, at an enterprise valuation of $892 million. It remains Indonesia's largest ever PE deal. 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. Only 1.8% of Matahari is currently publicly traded.

The company has benefited from the emergence of Indonesia's middle class, which accounted for 55% of the population - or 131 million people - in 2011, up from 38% in 2003. McKinsey & Company expects an additional 90 million people to join the ranks of the "consuming class" by 2030, with spending in urban areas rising 7.7% per annum to $1.1 trillion.

Matahari posted a 66% year-on-year rise in net income to IDR771 billion ($80 million) in 2012. It is the country's fourth-largest retail brand by sales, after convenience store chains Alfamart and Indomaret, and French hypermarket chain Carrefour, with 116 stores nationwide.

It first emerged that CVC was considering exit options late last year when CIMB, Morgan Stanley and UBS were appointed to run a sale process.

Japan's Aeon Group and a unit of Thailand's Central Group were said to be considering a full acquisition while Temasek Holdings and American International Group (AIG) were reportedly approached to participate in the placement of a smaller stake, should CVC opt for that route.

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