CVC picks banks to sell stake in Matahari: sources

Tue Oct 23, 2012 7:54am EDT
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JAKARTA (Reuters) - Private equity firm CVC Partners CVC.UL has hired CIMB, Morgan Stanley (MS.N: Quote) and UBS UBSN.VX to sell a stake in Indonesian group PT Matahari Department Store (LPPF.JK: Quote), sources said.

CVC is looking at a deal that would value the whole company at more than $2 billion, having paid less than half that 2-1/2 years ago, one of two sources with direct knowledge of the matter told Reuters on Tuesday.

"CVC is looking to sell a stake in the first half of 2013," another source said. Sources declined to be named as they were not authorized to talk to the media.

CVC was not available to comment.

It has asked banks since late September to explore plans to sell Matahari, sources told Reuters earlier.

A successful sale of fast-growing Matahari, Indonesia's biggest department store chain, would likely allow CVC to earn a strong investment return ahead of an expected fundraising push for its next Asia fund, the sources said.

It would also be a boost for the London-based buyout firm as it faces a heavy loss on its investment in Australian group Nine Entertainment.

CVC bought a 98 percent stake in Matahari in early 2010 for $790 million, tying up with local investment vehicle Matahari Putra Prima Tbk MPPA.JK in what is still the nation's biggest private equity buyout.

A CVC selldown of Matahari would also be a test for private equity firms wanting to cash out of Indonesia, which in recent years has seen a rush of private equity inflows.   Continued...