Malaysia-headquartered private equity firm Creador has exited its investment in Indonesia’s Cimory Group, a protein-based packaged food and beverage manufacturer, an industry executive told DealStreetAsia.
Creador sold its stake in Cimory Group back to the founding family, Bambang Sutantio, late last year. The promoter share buyback indicates a shift away from a previous proposal to list the company on the Indonesia Stock Exchange (IDX).
The IPO plan was dropped as Indonesia’s capital market was not seen as conducive to a listing, the industry executive said. Earlier in 2019, the company had held discussions with potential IPO underwriters before Creador received a buyback offer from the founding family.
Despite the suspension of its IPO plans, Cimory Group still envisages being a public company at a later date.
Creador is said to have invested in Cimory Group for a less than 20 per cent stake back in 2015. The investment terms were not disclosed by the PE firm. It is understood that Creador has earned reasonable returns on its nearly four-year-old investment.
A Creador spokesperson declined to comment on the matter.
Founded in 1992, Cimory Group manufactures processed meat, dairy, soy, and egg products under various brands, including Cimory, Kanzler, and Besto, according to information on Creador’s website.
Cimory Group has a leading market share in yoghurt and premium sausage products. It is based in Jakarta with manufacturing facilities in Greater Jakarta and Central Java.
Cimory Group, also known as Makro Group, has other subsidiaries such as Java Egg Specialties and Kanemory Food Service, which is a joint venture with Japan’s Kanematsu Corporation.
Based in Kuala Lumpur, Creador invests in companies across South and Southeast Asia. The firm has collected around $565 million for its fourth fund, Creador IV, exceeding its hard cap of $550 million, we reported earlier.
Aside from Cimory Group, Creador’s investments in Indonesia include cereal producer Simba Indosnack Makmur, multi-finance company BFI Finance, private commercial bank Bank Index Selindo, as well as women and children’s hospital chain Medikaloka Hermina.