REFILE-TPG-backed Northstar expands into take-private deals

Tue Nov 20, 2012 3:21am EST

HONG KONG Nov 20 (Reuters) - Indonesian private equity firm Northstar Group is expanding into take-private deals, agreeing to buy a majority stake in Singapore-listed Nera Telecommunications and offering to buy the entire company for around $146 million, in a sign of growing ambition among Asia's private equity firms.

Norway's Eltek ASA said it has agreed to sell its 50.05 percent stake in Nera to Northstar, part-owned by TPG Capital , for S$88.8 million ($72.6 million) or S$0.49 a share. Northstar will extend the same offer for the remaining shares in a mandatory unconditional cash offer.

Northstar's offer, through wholly owned subsidiary Asia Systems Ltd, is a 6.3 percent discount to Monday's closing price for telecoms group Nera, whose operations include satellite communications and payments solutions.

Northstar, like many other emerging-market private equity funds, has previously focused largely on taking a minority stake in private companies, rather than investing in publicly listed companies.

The firm has $1.2 billion in assets under management and last year raised Indonesia's biggest ever private equity fund of $820 million. Around 15-20 percent of that new fund was earmarked for potential investments outside Indonesia.

TPG last year deepened its long-standing relationship with Northstar when the two firms swapped stakes.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

California state worker Albert Jagow (L) goes over his retirement options with Calpers Retirement Program Specialist JeanAnn Kirkpatrick at the Calpers regional office in Sacramento, California October 21, 2009. Calpers, the largest U.S. public pension fund, manages retirement benefits for more than 1.6 million people, with assets comparable in value to the entire GDP of Israel. The Calpers investment portfolio had a historic drop in value, going from a peak of $250 billion in the fall of 2007 to $167 billion in March 2009, a loss of about a third during that period. It is now around $200 billion. REUTERS/Max Whittaker   (UNITED STATES) - RTXPWOZ

How to get out of debt

Financial adviser Eric Brotman offers strategies for cutting debt from student loans and elder care -- and how to avoid money woes in the first place.  Video