CVC to buy SPi holdings in the Philippines(2)

The Asia Pacific unit of CVC Capital Partners has made its second deal in a country where few private equity deals have been done.

CVC Asia Pacific has agreed to acquire Manila-based business process outsourcing firm SPi Holdings for an undisclosed sum. The firm will buy the business through CVC-owned Asia Outsourcing Gamma Limited. 

The seller, Philippine Long Distance Telephone Company (PLDT), released a statement saying it would divest its BPO business, with the deal expected to complete in March 2013. UBS acted as exclusive financial adviser to PLDT.

PLDT will reinvest some of the proceeds from the sale into Asia Outsourcing Gamma Limited and continue to participate in the growth of the business as a partner, with an approximate 20 percent stake.

Brian Hong, CVC senior managing director, said in a statement, “We are happy to be able to partner with PLDT in this transaction and excited to support SPi as it continues to deliver best-in-class BPO services and expanding capabilities to its customers. We see many significant opportunities within the attractive BPO segments that SPi serves and look forward to working with the exceptional team at SPi in continuing to grow the company.”

CVC declined to comment further.

The deal marks CVC’s second in the Philippines. In 2011, the firm invested $119 million for a 15 percent stake in the Rizal Commercial Bank, possibly the largest private equity deal ever in the country. 

The Philippines has received little private equity investment. Only ten small deals have closed in the country since 2009, according to Thomson Reuters data, PEI reported earlier.

However, firms are exploring opportunities in the country’s tourism, business process outsourcing and consumer finance sectors. Emerging markets firm Aureos completed two small deals in the Philippines during 2011, a $4 million investment in healthcare provider Daniel Mercado Medical Center and a $7 million investment in cosmetics company HBC, according to the firm.