TPG eyes controlling stake in Indonesian tire manufacturer

Bidders are eyeing a majority stake that is believed to have been put up for sale by Salim Group, one of the region's largest conglomerate, and investment banker Peter Tanuri. Their combined 44% stake in Multistrada Arah Sarana, held directly and indirectly through several vehicles, is worth at least $200 million.

Salim and Tanuri are said to have appointed HSBC to arrange the sale.

Any acquisition would trigger a mandatory offer for the rest of the shares, which are publicly held. Multistrada has a full market value of about $360 million, based on Monday's close.

The company manufactures all type of tires, with 70% of its products shipped to Asia Pacific, Middle East, Europe, America and Africa. Net profit came to IDR176 billion ($21 million) last year, while revenue increased by 19 % to IDR2.01 trillion, according to company’s accounts.

It is thought that any bid from TPG would be made in collaboration with its local affiliate, Northstar Pacific Partners. TPG is an anchor investor in Northstar's third buyout fund, which is believed to have completed a final close of $750 million, well above the $500 million target.

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• Topics
• Industrials
• Buyout
• Buyouts
• Southeast Asia
• TPG Capital