<article>CIMB Private Equity Sdn Bhd, the wholly-owned investment arm of Malaysia&#8217;s CIMB Group, will buy a 10% stake, valued at $25 million, in PT Modern Internasional Tbk, the parent firm of 7-Eleven convenience stores in Indonesia, the company said.</article>

CIMB Private Equity Sdn Bhd, the wholly-owned investment arm of Malaysia&#8217;s CIMB Group, will buy a 10% stake, valued at $25 million, in PT Modern Internasional Tbk, the parent firm of 7-Eleven convenience stores in Indonesia, the company said.
The deal, that is slated to close early November, will see CIMB Private Equity subscribe to the newly issued shares in Modern Internasional and the latter will use the proceeds to upgrade its infrastructure and set up between 60 to 70 additional 7-Eleven outlets next year.
&#8220;The partnership enables small and medium enterprises to distribute their products through 7-Eleven stores, as well as obtaining financial advice and support from CIMB,&#8221; said Henri Honoris, president of Modern Sevel Indonesia, in a press release.
For CIMB, which also offers banking services in Indonesia through its subsidiary (CIMB Niaga), the investment will help it target the country’s unbanked population through the 7-eleven retail outlets. 
Modern Internasional is planning take the franchisee route to increase it&#8217;s 7-eleven stores network from the current 176 to about 2500 in the coming decade. The retailer can synergise with CIMB to provide finance to the small traders and businessmen, who will be the future franchisee-owners of the 7-eleven stores.
The Malaysia-headquartered bank has already partnered the larger supermarket chains &#8211; Indomaret and Alfamart – in Indonesia. These supermarkets, now offer CIMB&#8217;s mobile banking services at their centres. Indonesia is an important market and contributes about 30% of CIMB’s total revenues.
The investment in Modern, will enable CIMB to compete with other market players such as Bank Mandiri, Bank Rakyat Indonesia, Bank Central Asia and Bank Negara Indonesia.
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CIMB buys 10% in Indonesia’s 7-Eleven operator

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CIMB buys 10% in Indonesia’s 7-Eleven operator

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