CVC acquires minority stake worth $155m in Indonesia's Samator Indo Gas

CVC acquires minority stake worth $155m in Indonesia's Samator Indo Gas

IDX-listed industrial gas producer PT Samator Indo Gas Tbk announced on Thursday that Matrix Company Limited, an investment holding company managed by CVC Capital Partners (CVC), has acquired a significant minority stake in it worth $155 million.

The Harsono family will continue to be top stakeholders in Samator Indo Gas, according to the statement. The Harsono family owns a 28.44% stake in Samator Indo Gas, as on March 2023, according to IDX data, while investment firm PT Saratoga Sedaya Investama and PT Aneka Mega Energi own a 10% stake each.

Bloomberg had reported in February that CVC may lead a bid for a minority stake worth $150-200 million in Samator Indo Gas.

The new investment can support the company’s expansion plans, including a new plant in Kawasan Industri Terpadu Batang (KITB), Central Java, Indonesia. The company is scheduled to start construction of the plant this month and 500-600 billion rupiah will be allocated to support the construction phase until the end of 2024. 

Samator Indo Gas plans to serve the industrial and medical gas needs in Central Java, and also further develop its pipeline business to serve tenants in KITB, which is planned as an area that will support the development of Indonesia’s electric vehicle industry.

“CVC’s successful track record in both Indonesia and the global industrial gas industry will bring significant benefits to the company as well as its stakeholders. Samator Indo Gas will benefit from CVC’s deep industry experience and resources to further expand within the country,” said Imelda Harsono, director of Samator Indo Gas in a statement.

CVC has 137 billion euros in assets under management.

Andy Purwohardono, partner and head of CVC Indonesia said CVC’s investment in Samator Indo Gas will bring benefits to the company including the transfer of global knowledge and sharing of best practices. “This marks our eighth investment in Indonesia since 2010. We not only see this investment as an opportunity for us to back a successful business in the next stage of its growth journey but also to contribute to the continued development of Indonesia’s economic output,” Purwohardono explained.

Previously known as PT Aneka Gas Industri, the company changed its name in December. It engages in four business lines — industrial gas production, industrial gas trading, industrial gas equipment trading, and industrial gas equipment installation. The firm has been publicly listed since September 2016. Samator Indo Gas has 55 industrial gas plants and 106 filling stations in 28 provinces across Indonesia.

According to its latest financial report, Samator Indo Gas’s total sales reached 1.90 trillion rupiah in the nine-month period ended September 30, 2022, down 8.3% YoY. Gross profit in the period stood at 852.40 billion rupiah, down 11% YoY.

In the next two to three years, Samator Indo Gas aims to grow sales twice the national GDP growth rate, and targets to achieve double-digit net profit margin through operational optimisations as well as strategic commercial initiatives. 

Edited by: Pramod Mathew

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