HONG KONG: CVC Capital Partners has secured about US$200 million (RM620 million) in initial pledges from cornerstone investors, including Och-Ziff Capital Management Group LLC and asset manager Schroders, for its up to US$1.5 billion share offer in Indonesian retailer PT Matahari Department Store, sources with direct knowledge of the matter said.
CVC, a London-based private equity firm, is selling as much as a 40 per cent stake in Matahari in what is expected to be Indonesia's biggest share sale since a US$4.4 billion offering by PT Bakrie & Brothers in 2008.
It is a test case for private-equity exits in Indonesia, which has seen a rush of investors seeking to benefit from rapid economic growth in Southeast Asia's biggest economy.
Goldman Sachs Investment Partners and hedge fund Lone Pine Capital are among the other cornerstones making initial commitments, though the final roster and the size of the commitments might change, said the sources.
This is the first time anyone has reported that CVC has secured a cornerstone investor for the share offering.
The offering is expected to be launched on Monday, added the sources.
The shares are being marketed in a price-to-earnings (PE) ratio range of 25 to 29 times, they added.
The ratio exceeds those of most of its rivals because the company's annualised profit is expected to grow more than 40 per cent over the next three years, according to how bankers are marketing the deal to potential investors.
Among its peers, PT Mitra Adiperkasa is trading at a PE ratio of 23.94 times and PT Ramayana Lestari Sentosa is trading at a 19.36 times.
CVC has set a per-share price range of 10,000 to 11,250 rupiah (RM3.20 to RM3.60) for the offer, the Wall Street Journal reported yesterday, citing sources familiar with the matter.
CVC led a consortium to buy 98 per cent of the Indonesian retail group in early 2010 for US$790 million, in the country's largest-ever private equity deal.
The sale of shares in Matahari, the top department store operator in Indonesia with some 110 stores, will help CVC make a profit from one of its early investments in Southeast Asia.
Investors also are closely monitoring TPG Capital's majority stake, valued around US$1.7 billion, in Indonesian lender Bank Tan Pensium Nasional, because the US-headquartered firm's lock-up expires this month, sources have previously said. Reuters