CLSA fund said to be weighing exit from Indonesian F&B chain Arena Gourmet

Photo: Pixabay

CLSA Capital Partners, the asset management business of HK-based brokerage CLSA, is seeking to completely exit from its over five-year-old investment in the Indonesian food and beverage chain Arena Gourmet, according to three people familiar with the matter.

CLSA Capital had invested in Arena in 2015 through its pan-Asian private equity strategy ARIA Investment Partners Fund IV. CLSA is understood to be holding around a 45% stake in Arena while the rest is held by the promoters.

While the exact financial terms of the deal could not be ascertained, ARIA typically invests $10-50 million per transaction with possible co-investment going up to $100 million.

When contacted, CLSA Capital and Arena Gourmet declined to comment on the development.

Established in 2002, PT Arena Gourmet operates a chain of 25 mid-market-focused casual dining restaurants in Jakarta. Its brands include Penang Bistro (Malaysian), Seribu Rasa (South East Asian) and HK Café (Hong Kong), Tatsuya (Teppanyaki), Miyagi (Japanese) and La Hoya (Mexican).

Both CLSA and Arena are said to be expecting a valuation of $30-40 million for the F&B asset, the sources mentioned above said.

As pandemic-induced restrictions ease in Indonesia, the F&B and casual dining businesses are picking up activity, leading investors to look at exit plans, according to observers tracking the space. While CLSA is said to have initiated exit plans, it is likely that a final decision on the sale will take place when the impact of the pandemic relatively subsides.

CLSA ARIA funds provide growth and expansion capital to Asia’s emerging brands. ARIA backs investments in retail, healthcare, lifestyle and consumer tech sectors.

Its target markets include India, SE East Asia, and Greater China. ARIA’s current portfolio comprises  Singapore-based online home furnishing brand FortyTwo; ACT Genomics; e-commerce solutions provider Azoya; HK’s multi-brand restaurant group Gaia Group; India’s Holisol Logistics; China’s Coco Healthcare Products; India’s Nobel Hygiene Private Limited; and water purifier brand Livpure Private Limited.

Among major deals in the F&A space this year, Burger King India inked an agreement to acquire a controlling stake in PT Sari Burger Indonesia, which manages and operates the fast-food brand in the SE market, from an investment platform managed by Everstone Capital.

As previously reported by DealStreetAsia, Indonesia-focused private equity firm Falcon House Partners has been in the market exploring the sale of its interest in food and beverage portfolios managed under PT Eatwell Culinary. Eatwell Culinary, in which Falcon House owns an 80% stake, houses Chinese restaurant chain Ta Wan, Japanese cuisine-based Ichiban Sushi, food court operator Eat & Eat as well as the Indonesian Dapur Solo.

Falcon House was also said to be in talks to sell its stake in lifestyle and hospitality brand Potato Head, in which it owns a 35% stake.

Indonesian restaurant chain Crystal Jade, in which L Catterton invested $100 million for a majority stake in 2014, is also said to be in the market to rake in an investment, as reported by DealStreetAsia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.