SEASAF exits from highway concession holder Cerah Sama for $21.9m

Cheras-Kajang Highway. Image taken from concession holder Grand Saga website.

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.

The stake was sold to a joint venture company between Taliworks Corporation Bhd and the Employees Provident Fund Board (EPF) of Malaysia.

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.

SEASAF is sponsored by CIMB Group Sdn Bhd (CIMB) and African bank Standard Bank Plc, and is co-sponsored by the EPF.

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.

Also read: 

New opportunities for Thai infrastructure investment

Indonesian infrastructure presents strong market for private equity investments

Malaysia IPO dealbook: Malakoff courts cornerstone investors, AirAsia keen on PH & IND

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.

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Following vacancies can be applied for (only in Singapore).   

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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.