CVC sells more Matahari shares

The firm has made another partial exit from the Indonesian business as it gears up to close a $3.5bn Asia fund.

CVC Asia Pacific, the regional arm of CVC Capital Partners, along with other investors, has sold a 6.5 percent stake in Indonesia's Matahari Department Stores, according to disclosure with the Indonesian stock exchange.

The block sale priced 190 million shares at IDR 13,100 ($1.13; €0.82), a discount of 6.4 percent to its closing price on Friday.

CVC declined to comment on the sale, but media reported the total deal was worth around $214 million.

The exit is the firm’s second from the Indonesian consumer business, which it owns in partnership with local family conglomerate the Lippo Group.

In March last year, CVC sold 40 percent of Matahari in a deal worth $1.3 billion, having priced the 1.17 billion shares divested at Indonesian Rp 10,850 (€0.86; $1.12) per share, a source close to the matter confirmed to Private Equity International earlier.

After the March 2013 sale, CVC held 58.15 percent of Matahari prior to the exercise of any over-allotment option. The share price translated into 27x its 2013 price-to-earnings ratio, towards the high-end of its narrowed range of between Rp 10,650 to Rp 10,950.

CVC expects to gain an approximate 7x-8x return on its total investment once exited, industry sources said. CVC would not comment on the exit multiple.

While the sale is smaller than its previous $1.3 billion partial exit from the company, it comes at a crucial time as the firm gears up to close its $3.5 billion Asia vehicle.

Last month, CVC had raised $3 billion toward its latest fund after just nine months in the market, PEI reported at the time.

“CVC is delighted with how quickly they've got to this stage of the fundraising,” PEI’s source said.