F1 owner CVC to sell Indonesian shopping giant

Michael Bow
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UK PRIVATE equity powerhouse CVC Capital Partners, which owns Formula One, yesterday geared up to sell its majority holding in Indonesian’s biggest department store chain Matahari after three years invested in the company.

CVC, which took an 80 per cent stake in Matahari Department Store in 2010 for some $892m (£598m), is pursuing a “dual-track” sale, simultaneously seeking to float around

40 per cent of its stake or auction the entire holding in a bid to get the best price.

CVC’s Asia Pacific arm and co-investor Multipolar, which owns a further 18 per cent of the firm, are hoping to place shares in the company worth some 13.2 trillion rupiah (£911m) to a number of investors, understood to include BlackRock Asset Management, Fidelity Investments, Schroders and Goldman Sachs Investment Partners.

In parallel, CVC is also exploring a trade sale of its entire holding in the company to potential buyers, with a price tag of around $3.4bn mooted on the current valuation of the shares. This would make a complete exit one of CVC’s most lucrative deals, netting 3.8 times the original investment.

CVC, which has also been exploring plans to float its F1 business in Singapore next year, is one of the biggest buyout companies in the world having invested some $28bn since its inception in 1981.

It runs its head office from The Strand in London.

The share sale for Matahari is expected to be priced within the next ten days, with the settlement set for 27 March.

CVC is understood to have hired CIMB Bank, Morgan Stanley and UBS last year to manage the sale.