Milbank LLP advised shareholders of PT Samator Indo Gas Tbk, the first and leading industrial and medical gas company in Indonesia, on a minority stake sale and strategic joint venture with Matrix Company Limited, an investment holding company invested in by funds managed by alternative investment manager CVC Capital Partners. Under the terms of the definitive agreement, which closed on March 15, 2023, CVC acquired over 30% from current shareholders, with an aggregate consideration of approximately US$155 million.
Samator Indo Gas’ majority owners, the Harsono family, will continue to hold a majority stake of the company founded in 1916 by the late Mr. Arief Harsono. The investment by CVC and strategic partnership will allow the Samator group to further reach new heights in developing its plants and filling stations in more than 28 Indonesian provinces, and strengthen its position as Indonesia’s leading industrial and medical gas provider to hospitals and healthcare companies. Such expansion plans include the recently announced plant in Kawasan Industri Terpadu Batang, Central Java, Indonesia, with construction scheduled to start this month deploying over IDR 500 billion to support this construction phase through to the end of 2024. In addition to strengthening the industrial and medical gas sectors in Central Java, Indonesia, this strategic partnership is intended to support the growth of Kawasan Industri Terpadu Batang in support of Indonesia’s electric vehicle industry. The Samator group projects double-digit net profit margin through optimizing operations and strategic commercial initiatives with the support of this investment.
With over €137 billion of assets under management and a global network of 25 offices, CVC has a strong history of investing in various industries in Indonesia, including healthcare and retail. The minority stake in Samator Indo Gas will bolster its global portfolio of more than 120 companies.
“CVC’s investment underscores global investors’ increased interest in the Indonesian market, which we have watched expand for the last several years,” said Milbank partner Jacqueline Chan. “Milbank continues to be a trusted advisor for ambitious business owners like the Harsono family and is pleased to have collaborated with Samator Indo Gas as it identified the right partner with both the regional presence and global reach that will best situate it for future growth.”
The Singapore-based Milbank team was led by Ms. Chan. The team also included associates Stephanie Kam, Claire Hooi and legal manager Nicohl Chien.
