Malaysian private equity firm Creador has kicked off the sale process to exit its investment in Indonesian cereal producer Simba Indosnack Makmur (Simba Food), a top executive at the investment firm told DealStreetAsia.
Creador has received interest from various strategic investors and financial institutions for Simba, but “we haven’t reached any conclusion,” Creador CEO Brahmal Vasuvedan said.
The deal value is expected to be around $100 million, he added.
DealStreetAsia had reported in October last year that Creador is lining up an exit plan from Simba.
Maybank Kim Eng is the sell-side advisor for the sale.
Simba was acquired by Creador in 2013 from Indian consumer goods giant Godrej Consumer Products Limited (GCPL). The firm had paid $35 million for a 100 per cent stake in Simba, according to a media report.
Simba Food was Creador’s second investment in Indonesia after broadcast satellite provider MNC Sky Vision, according to the PE firm’s website.
Creador directly owns 67 per cent of Simba Food, while the rest is owned by one of its investors. The PE firm is looking at a complete exit through a trade sale, Vasuvedan said.
Established in 1997, Simba Food is the second-largest cereal player in Indonesia after Nestle, which owns the Koko Krunch brand. Simba’s product portfolio includes Simba Choco Chips, Rainbow Hoops, Choco Chips Duo, Choco Rillas, and Turbo, according to its website.
Simba has a 35 per cent share of Indonesia’s breakfast cereal market, a company executive had told DealStreetAsia last October. Other cereal brands in Indonesia include Energen, which is manufactured by local player Mayora Indah, and GoVit Sagon Cereal produced by Indofood CBP Sukses Makmur.
In late 2019, Creador had exited its investment in Indonesia’s Cimory Group (also known as Makro Group), a protein-based packaged food and beverage manufacturer. The PE firm had sold the stake back to Bambang Sutantio, the founding family of Cimory Group. The initial exit plan was an IPO in the Indonesia Stock Exchange (IDX), but the capital market was deemed not conducive for a listing at the time.
Creador had reportedly acquired a less than 20 per cent stake in Cimory Group in 2015, but the investment terms were not disclosed by the PE firm.
According to its website, Creador has also exited other Indonesian investments such as MNC Sky Vision as well as the mother and children hospital chain Hermina Group. The firm still holds an undisclosed stake in the multi-finance company BFI Finance.
