CVC, Multipolar make US$1.3bil from selling part of Matahari shares

HONG KONG: CVC Capital Partners and PT Multipolar Tbk raised around US$1.3bil by selling part of their stake in Indonesian retail giant PT Matahari Department Store, sources said, underlining the profit potential for private equity firms in fast-growing South-East Asian markets.

London-based CVC, which bought a 60% stake in Matahari in 2010, is on course to make a return of between seven and eight times its initial investment if it eventually exits its entire stake at the current valuation, according to Reuters calculations. By private equity standards, making two times cash paid is considered a success.