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CVC unit sells 12% stake in Matahari
A unit of private equity firm CVC Capital Partners has sold a 12 percent stake in Indonesian retailer PT Matahari Department Store Tbk in two separate transactions, IFR, a Thomson Reuters publication, reported on Monday, citing people familiar with the deal
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unit of private equity firm CVC Capital Partners has sold a 12 percent stake in Indonesian retailer PT Matahari Department Store Tbk in two separate transactions, IFR, a Thomson Reuters publication, reported on Monday, citing people familiar with the deal.
In one transaction, CVC raised Rp 3.67 trillion (US$293 million) by selling 8 percent of Matahari, or 238.6 million shares, at Rp 15,400 each in a block trade largely to institutional investors, reported IFR. The price represented a 4.9 percent discount to Matahari's closing price of Rp 16,200 last Friday, Reuters reported.
Separately, CVC directly sold an additional 4 percent stake in Matahari to a single investor, said two people familiar with the matter, who declined to be identified as the information was not public.
The latest stake sales cut CVC's holding in Matahari to just around 2 percent. Last year, CVC sold 18 percent of Matahari for a total of Rp 7.2 trillion in two separate deals. Since this time last month, the company's shares have risen more than 8 percent.
According to analysts at Trimegah Securities, which has a 'buy' rating and a Rp 17,900 target price on the shares, the company offers a good product mix and growth potential outside Java. The broker forecast a 21 percent compound annual growth rate in earnings per share for Matahari's 2015-2018 fiscal years. (***)
