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CVC seeks $3.5bn for Indonesian department store chain Matahari

RBR Staff Writer Published 25 February 2013

UK-based private equity firm CVC Capital is seeking a greater valuation for its Indonesian department store chain Matahari.

The company is expecting a 44% higher valuation when compared to an earlier bid tabled by Japanese retailer Aeon.

CVC added that a 40% stake was up for sale with a possible transaction value of nearly $1.5bn, reported Bloomberg.

Aeon had earlier retracted its $2.6bn for the chain citing the $3.5bn value stated by the equity firm to be too high for the retail assets in question.

In a letter to the CVC, Aeon business development unit executive Masaaki Toyoshima wrote that the Japanese retailer couldn't meet the valuation.

Aeon said in a statement that CVC's has quoted a price that was 15 times the chain's estimated earnings before interest, depreciation and amortization for 2013.

A person with familiar with developments told the news agency that CVC is looking to raise nearly $3bn for its Asian fund via the divestment of Matahari.