* Matahari shares offered in 10,000-11,250 rupiah range
* CVC, Multipolar selling 40 pct stake in Matahari
* BlackRock, Azentus, Och-Ziff, Temasek among cornerstones
* Share offering set to price on March 21
By Yantoultra Ngui and Elzio Barreto
KUALA LUMPUR/HONG KONG, March 11 CVC Capital
Partners and PT Multipolar Tbk launched on Monday an up to $1.36
billion offering of shares in retailer PT Matahari Department
Store, seeking to benefit from growing investor appetite for
consumer stocks in Indonesia and partially cash out of one of
their most profitable investments in the region.
CVC, through one of its subsidiaries, and Multipolar
are offering 1.167 billion shares in Matahari
in a range of 10,000 to 11,250 rupiah, putting the
total deal at 13.13 trillion rupiah ($1.36 billion), according
to the term sheet.
CVC's exit from Matahari is on target to be among the most
profitable for a big firm in Southeast Asia. The London-based
private equity firm led a group that acquired Matahari in 2010
for $790 million, including debt, and is now making a partial
exit that values the company at $3.4 billion, according to
CVC declined to comment. Multipolar and Matahari did not
immediately return a request for comment on the offering.
The share sale is expected to be priced on March 21, with
the settlement set for March 27, the terms showed.
The offering has secured about $435 million in cornerstone
pledges from a who's who of global and regional investors,
including BlackRock, Fidelity Investments, Schroders
and Goldman Sachs' GS Investment Strategies,
confirming a Reuters report on Friday.
The group of 15 investors also includes Government of
Singapore Investment Corp and state investor Temasek, and hedge
funds Och-Ziff Capital Management Group LLC and Azentus
Capital Management Ltd.
Investors are attracted to Indonesia's rapidly 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.
The secondary share sale, equivalent to a 40 percent stake
in Matahari, would cut the stakes owned by Multipolar and CVC in
Indonesia's top department store operator. It would also help
boost liquidity in the thinly traded stock.
The indicative range is equivalent to a price-to-earnings
ratio of 24.9 to 28 times for 2013 and 18.3 to 20.6 times for
CVC hired CIMB Bank, Morgan Stanley and UBS
last year to manage the sale.