The South East Asian Strategic Assets Fund L P (SEASAF) has completed the divestment of its 35 per cent equity interest in Cerah Sama Sdn Bhd, which indirectly holds the concession to own and operate the Cheras-Kajang Highway.
SEASAF divested the stake at MYR80 million ($21.86 million).
Cerah Sama is the investment holding company of Grand Saga Sdn Bhd, which holds the concession to own and operate the 11.5KM Cheras-Kajang Highway in Malaysia.
The buyer, TEI Sdn Bhd, formerly known as Pinggiran Infrastructure Sdn Bhd, is a 51 per cent indirect subsidiary of Taliworks. EPF owns the remaining 49 per cent equity in TEI.
The deal was advised by Capital Advisors Partners Asia Pte Ltd (CapAsia), a private equity fund management company specialising in infrastructure investment in Southeast Asia.
In two announcements on the Malaysian stock exchange, Taliworks announced that TEI accepted the offer to acquire 208,250 ordinary shares of MYR1 each representing 35 per cent of the issued and paid-up share capital of Cerah Sama for a total cash consideration of MYR80 million from SEASAF Highway Sdn Bhd.
The acquisition of the 35 per cent stake was completed on March 26, Taliworks said in a filing last week.
CapAsia noted in a press statement that SEASAF invested in Cerah Sama Sdn Bhd in November 2007, a year after the fund was established.
The Cheras – Kajang Highway, completed in 1998, was one of the first four-lane dual carriageways in Malaysia, stretching from the Connaught Interchange, Cheras to Saujana Impian, Kajang.
SEASAF had also invested in a toll-road in Thailand in 2009, which it exited profitably in November 2013. Two other funds managed by CapAsia hold significant minority interests in other toll roads in the region.
CapAsia co-CEO Craig Martin said: “SEASAF’s investments in operating toll-roads in South East Asia have performed well, and this is another exit for SEASAF. Over the last seven years the investment in Cerah Sama has provided the Fund with a mixture of dividend income and capital returns.”
SEASAF’s remaining asset is an equity stake in Malakoff Corp, one of South East Asia’s largest independent power producers, which has separately announced its intention to IPO in the second quarter of 2015.
SEASAF is a $250 million private equity fund investing in the infrastructure, energy and natural resource sectors and associated industries in South East Asia,focusing primarily on Malaysia and Indonesia.
Singapore-headquartered CapAsia is a private equity fund manager specialising in mid-market infrastructure investment in Southeast Asia. The firm manages three infrastructure funds with approximately $300 million in assets under management.
CapAsia is majority owned by the New York-based Rohatyn Group (TRG), an independent investment firm focused on emerging markets, with the Malaysian banking giant CIMB Group as a significant minority shareholder.