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CVC on target for up to eight times Matahari return following share sale

22 Mar 2013

matahari department store2CVC Capital Partners is reportedly on course to make between seven and eight times its initial investment in Indonesia’s Matahari Department Store after selling part of its stake alongside Multipolar for $1.3bn.

The pair sold more than 1.1 billion shares at IDR10,850 according to Reuters sources, making it the biggest stock sale in Indonesia since 2008.

It said the transaction valued Matahari at almost $3.3bn and gave it a price to earnings multiple of 27 times for the 2013 financial year, citing sources with knowledge of the matter.

CVC’s original $774m purchase of the company alongside Matahari Putra Prima in 2010 was the largest-ever foreign private equity-led investment in the country at the time.

The firm acquired a 60 per cent stake through the purchase including about $350 of leveraged debt, Reuters said, and will hit between seven and eight times on its return if it sells its remaining stake at the same price.

BlackRock and GSIS joined Schroders, Och-Ziff Capital Management, Singapore sovereign investor Temasek and 12 other investors providing about $435m of cornerstone investment for the share sale.

London-based CVC is currently believed to be in talks with investors about its next buyout fund, which could target as much as €11bn ($14.25bn).

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