JAKARTA (TheInsiderStories) - One of Indonesia’s richest family Salim Group is pledging shares in some of its group companies to raise $1 billion from a consortium of private-equity firms including Northstar Equity Partners, TPG Capital and Singapore-based fund Gateway Management Co., The Wall Street Journal reported.
The consortium, will provide secured financing to companies owned by Anthoni Salim. They will in turn pledge shares of his Hong Kong-listed entity First Pacific and Indonesia-based unlisted minimart and convenience store operator Indomaret as collateral, people with knowledge of the deal said Friday.
First Pacific is a Hong Kong-based investment management and holding company with interests spanning telecommunications, infrastructure and consumer food products. Indomaret is Indonesia’s largest minimart operator with more than 11,000 convenience stores.
Northstar, which is leading the consortium, and TPG declined to comment. The Salim Group wasn’t immediately available for comment.
Mr. Salim’s group is raising funds in part to build cash reserves for future expansion, which could include mergers and acquisitions, the people said.
The Salim family is Indonesia’s third-richest family with a net worth of $5.4 billion, according to Forbes. The Salim Group, in turn, is one of Indonesia’s biggest conglomerates with interests ranging from palm oil plantations to media companies. Mr. Salim’s company Indofood Sukses Makmur also owns the world’s largest instant noodle producer.
The people said that the loan by the private-equity firms is for a period of six years and carries a coupon, although they didn’t provide further details.