CVC: Want to maintain control of Matahari after share sale; yet to set price | INSIDER EXCLUSIVE
(Insider Stories)-CVC Capital Partners isn’t yet talking about how much it expects to earn by cashing out part of its holding in PT Matahari Department Stores (LPPF) but says that for now it wants to keep control of the retailer after its initial share sale.
It’s also keeping quiet on deal pricing but gave some hints to why it’s letting go some of the stake.
“We have [owned] the company for three years already. It’s a good time to monetize our asset but despite all that we want, with our consortium, to still maintain control,” CVC Capital Partners Managing Director Wai Hoong Fock told The Insider Stories at the AVJC Indonesia 2013 private equity and venture capital forum at Intercontinental Jakarta Midplaza.
”We are still on the market,” he said in on deal pricing, while it may be possible “eventually, over time,” for CVC to sell down its whole stake in Indonesia’s biggest retailer.
CVC and its PT Multipolar Tbk (MLPL) unit last Monday launched an offering for 1.167 billion secondary shares, about 40% of Matahari, in a range of 10,000-11,250 rupiah.
That puts the total deal, set to price Thursday, at IDR13.13 trillion ($1.36 billion), making it one of the most profitable for a big firm in Southeast Asia, Reuters calculates. A CVC-led consortium bought Matahari in 2010 for $790 million, including debt, while the partial exit values the company at $3.4 billion, it says.
