KUALA LUMPUR (Oct 20): CIMB Private Equity (CIMB PE) has acquired a 10% stake in PT Modern Internasional TBK (MDRN), the listed retail operator and owner of the 7-Eleven convenience store franchise in Indonesia, for approximately US$25 million.
The investment is made via a subscription of newly issued shares representing such a stake in the existing share capital of MDRN.
The proceeds from the subscription will be used to fund capital expenditure related to new store openings and support infrastructure upgrades, CIMB PE said in a press statement earlier this evening.
"This investment strengthens our business relationship and further cements our support for MDRN's business, which is another testament of our commitment to providing a viable third asset class via private equity to help our partners grow," said Kenny Kim, group chief financial officer and chief executive officer of group strategy and strategic investments of CIMB Group.
"We are pleased to have CIMB PE as our new shareholder, reflecting the strong confidence and trust in the vision of MDRN's management in developing the 7-Eleven business in Indonesia. The synergies and added value that CIMB PE brings will further propel our growth as we continue to leverage our existing cooperation, creating a strong reciprocal relationship of mutual benefit and strengthening the brand awareness and values of both companies," said Henri Honoris, president director of PT Modern Sevel Indonesia, a unit of MDRN.
CIMB PE, a wholly owned subsidiary of CIMB Group, is a business within the CIMB group strategy and strategic investments division set up to bring the group's financial expertise, experience and network into the sphere of alternative investments, including private equity, real estate, infrastructure and special situations. CIMB PE manages over RM6 billion in committed and invested capital as at 31 December 2013.
Meanwhile, MDRN, founded in 1971, has been listed on the Jakarta Stock Exchange since 1991. In 2009, MDRN, through its subsidiary PT Modern Sevel Indonesia, became the owner and operator of the 7-Eleven franchise in Indonesia, which now opereates about 175 outlets, as at Sept 30, around Jakarta.