CVC, Multipolar raise $1.3 bln in Indonesia's Matahari offering

KUALA LUMPUR/HONG KONG, March 22 Thu Mar 21, 2013 9:28pm EDT

KUALA LUMPUR/HONG KONG, March 22 (Reuters) - CVC Capital Partners and PT Multipolar Tbk raised about $1.3 billion by selling shares in Indonesian retailer PT Matahari Department Store near the middle of a marketing range, sources told Reuters on Friday.

The sale allows CVC, the London-based private equity firm, to realise a profit from one of its early investments in Southeast Asia.

CVC, through one of its subsidiaries, and Multipolar sold 1.167 billion shares in Matahari at 10,850 rupiah each, putting the total deal at 12.66 trillion rupiahs ($1.3 billion), sources with direct knowledge of the deal said on Friday.

The deal had initially been marketed in a range of 10,000 to 11,250 rupiah per share, before being narrowed to 10,650 to 10,950 rupiah.

Investors are attracted to Indonesia's fast-growing economy and expanding middle class, with the country expected to add 90 million people to its consuming class by 2030, according to McKinsey & Co.

CIMB Bank, Morgan Stanley and UBS were hired as joint global coordinators for the deal. The underwriters stand to earn about $18.2 million, or 1.4 percent of the offering excluding the overallotment option on the sale, according to the offering document.