CVC bets $1.1bn on Malaysia-based Nirvana

The transaction comes two months after the firm appointed former HSBC Holdings' managing director Alvin Lim to head the firm’s businesses in Singapore and Malaysia.

Global buyout firm CVC Capital Partners has offered to acquire Malaysia-based funeral services provider Nirvana Asia, in a deal worth $1.1 billion, it said in a statement.

Following the proposed transaction, CVC and Nirvana’s founder, Tan Sri Kong, will be the two largest shareholders in the company. Tan will remain as the company’s chief executive officer and lead the existing management team of Nirvana.

CVC is offering shareholders HK $3.00 ($0.39; €0.35) per share in cash, representing a 37.6 percent premium to the 30-day average closing price of Nirvana shares prior to the offer.

Shares of the Hong Kong-listed company closed at HK$2.45 before trading was halted last week, giving it a market capitalisation of HK$6.61 billion.

In a statement to the Hong Kong Stock Exchange last week, Nirvana said trading was halted pending the release of an announcement related to a takeover.

Established in 1990, Nirvana provides burial plots and services, columbariums and pet memorial gardens, mainly in Malaysia. The company has overseas in Indonesia, Singapore, Thailand, Hong Kong, China and Vietnam.

In Asia, CVC is currently investing from its $3.5 billion 2013-vintage CVC Asia Pacific Fund IV. Limited partners in the fund include the New York State Common Retirement Fund, Japan Bank for International Cooperation and the Canada Pension Plan Investment Board, according to PEI Research and Analytics.

The firm is said to be in preliminary discussions with limited partners about launching a €12.5 billion buyout fund in the first half of 2017.

In February, the firm closed its $1 billion technology growth fund, CVC Growth Partners. The fund will invest in high-growth mid-market companies in technology-enabled business sectors, as reported by Private Equity International.

CVC manages over $33 billion of assets across European and Asian private equity, strategic opportunities and growth funds.