CVC returns $2b to investors from Asia deals in 2014

The first exit came as CVC sold part of its holding in Japan-based TechnoPro Holdings as the engineering staffing business went public in Tokyo. The company offered 27.26 million shares at JPY1,952 apiece to raise approximately JPY53 billion ($446 million). CVC reduced its holding from 99.99% to around 20%. The stock opened down 5% but has since recovered to JPY1,963.

The private equity firm bought TechnoPro - then known as the Japanese operations of employment agency Prompt Holdings - in 2012 via a management buyout. This facilitated an exit for Cerberus Capital Management. The transaction value was not disclosed, but according to AVCJ Research it was approximately $218 million.

CVC and management implemented a variety of initiatives to improve recruitment and retention of engineers and boost operating efficiencies. Operating profit is said to be on course to reach JPY7 billion for the current financial year, up from JPY5.7 billion in 2014 and JPY4 billion the year CVC invested.

Days after TechnoPro went public, Cathay Life Insurance announced it had agreed to buy a 20% stake in Philippines-based Rizal Commercial Banking Corporation (RCBC) for PHP17.92 billion ($400.5 million), with CVC and International Finance Corporation selling a portion of their holdings.

The private equity firm paid PHP4.96 billion (then approximately $115 million) for a 15% interest in 2011 and completed another partial exit last year, raising around $45 million. When the RCBC announced that Cathay's offer had been approved it indicated that CVC would sell 118.9 million shares, allowing the PE firm to take away PHP7.6 billion.

The third exit was Taiwan-based Nien Made, the world's leading manufacturer of interior shutters for windows and the fourth-largest blinds maker. CVC took the business private alongside the founding families in 2007 for $750 million. EBITDA have increased by more than 60% over the last four years. CVC's website states that the company's annual turnover is in excess of $400 million.

The private equity firm has offloaded its entire stake through a pre-IPO share sale to 37 investors. CVC's equity interest in Nien Made has not been disclosed. In November, Cathay Life announced that it would acquire a 5% stake for $40 million and GIC Private has bought an approximately 9% interest.

CVC's other exits in 2014 came after Australia-based hotel operator Mantra Group went public via a A$239.1 million ($194.7 million) IPO and through block trades in listed companies such as Chinese drug retailer Jintian Pharmaceutical Group, Indonesian broadband and cable TV operator Link Net, and Indonesian retailer Matahari Department Store.

SPi Global, a CVC-owned business process outsourcing provider in the Philippines, also sold its US healthcare business to a trade buyer.

The private equity firm closed its fourth pan-Asian fund last year at the hard cap of $3.5 billion.

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• Topics
• Exits
• North Asia
• Greater China
• Southeast Asia
• Australasia
• IPO
• Japan
• Australia
• China
• Trade sale
• Sell down
• Southeast Asia
• Philippines
• CVC Capital Partners
• Exit