Northstar, tycoon buy stake in Hutchison’s Indonesia unit
Northstar Pacific Partners is part of an investor group that has purchased a 35% stake in Hong Kong-based Hutchison Whampoa’s Indonesian telecom business. The transaction facilitates the exit of Thai conglomerate Charoen Pokphand.
The investor group is led by Garibaldi Thohir, who made his fortune from Adaro Energy, the coal mining company where he still serves as president director. Hutchison CP Telecommunications (HCPT) announced Charoen Pokphand's departure as an investor and the arrival of the Thorhir-led group. Thohir subsequently confirmed to The Wall Street Journal that he and his brother were partnering Northstar in the deal.
The purchase price has not been disclosed.
Charoen Pokphand bought a 40% stake in Hutchison's Indonesian unit, which operates under the 3 brand, in 2005. As a result, the name of the business changed from Cyber Access to Hutchison CP Telecommunications. Now the investor has exited, the business will be renamed Hutchison 3 Indonesia.
The Hong Kong parent's interest is held by Hutchison Asia Telecom (HAT), which owns mobile assets in Indonesia, Vietnam and Sri Lanka. It posted revenues of HK$1.6 billion ($206.3 million) in the first half of 2012, up 55% year-on-year, while EBITDA, though still negative, narrowed to HK$47 million from HK$543 million.
HCPT is Indonesia's fourth-largest mobile operators with 21 million customers, accounting for more than half of HAT's total subscriber base.
Adaro has played a key role in the development of Indonesian private equity, launching Saratoga Capital and Quvat Management into the mainstream. It also represents an early cooperative effort between the Northstar team and TPG Capital, which ultimately led to the US private equity firm investing in and alongside its Indonesian counterpart's funds, before taking a stake in the GP itself.
Northstar is currently investing its third fund, which closed in 2011 at $820 million. Recent deals include the purchase of a 49% stake in Indonesian brokerage Trimegah Securities for IDR200 billion ($20.8 million) and a S$177.3 million ($145 million) take-private for Singapore-listed Nera Telecommunications.
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