Quadria Capital in advanced talks to sell stake in Indonesia’s Soho Global Health

Photo: Reuters

Quadria Capital is in advanced talks with a global private equity (PE) firm to sell its existing stake in Indonesian pharmaceutical company Soho Global Health, three persons familiar with the development told DealStreetAsia.

The healthcare-focused PE firm that operates out of its Singapore and New Delhi offices in India, has been approached by a slew of investors such as CVC Capital Partners, General Atlantic and Carlyle.

At this stage, it is understood that Carlyle is the sole bidder vying for the stake, the people said.

When contacted by DealStreetAsia, a spokesperson of Carlyle declined to comment on the matter. Meanwhile, separate emails sent to Quadria Capital, CVC, General Atlantic and Soho Global Health did not elicit any response.

Quadria Capital acquired a 30 per cent stake in Soho in 2015 from local entrepreneur and founder Tan Eng Liang’s family. They still own the remaining stake in Soho.

While Quadria’s original investment amount could not be ascertained, the firm is understood to be “asking around 16x of Soho’s annual EBITDA,” said one of the persons mentioned above.

In September 2019, Tan Eng Liang had told DealStreetAsia that Soho was approached by a bouquet of global PE firms and pharmaceutical companies to purchase a stake in the company. However, he had also indicated that the company would prefer to engage with a PE firm as he and his family would want to run the business.

Prior to that, mid last year, Soho had also made headlines for appointing Citigroup, Mandiri Sekuritas and CLSA for a proposed listing that can put it on par with the listed peers such as Kalbe Farma, Kimia Farma and Tempo Scan Pacific in the archipelago.

Sources say Soho’s IPO plan is currently on hold. It is believed that the preparation will continue once Quadria closes the deal with a buyer to operate Soho.

Founded in 1946, Soho has a headcount of around 2,500 employees. It claims to cover 90 per cent of the targeted doctors in Indonesia with distribution reach over 41,000 outlets in the country. The company booked Rp2.4 trillion ($169 million) in net sales in 1H-2019, with net EBITDA standing at Rp 176 billion.

Soho produces generics, natural medicines, medical devices and consumer products. For the over-the-counter (OTC) category, Soho is Indonesia’s fourth-largest pharmaceutical company and Southeast Asia’s 13th largest pharmaceutical company.

Quadria Capital recently raised as much as $48.2 million for a parallel fund that will invest alongside Quadria Capital Fund II, according to the firm’s latest US Securities and Exchange Commission filing.

With this, the total fundraise for the parallel fund and the firm’s main fund currently stands close to $500 million.

 

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.