CIMB Standard exit nets 2.3x

The Malaysia- and Singapore-based private equity firm has sold its stake in publicly listed Indo Mines after a one-year holding period.

CIMB Standard Strategic Asset Advisors, a joint venture between Malaysian financial services group CIMB and Johannesburg-headquartered Standard Bank, has received a return of 2.3 times its investment in Indo Mines.
The firm sold its 8.1 percent stake in the Australian Securities Exchange-listed company for approximately $6 million (€4 million) via a block trade of 6,550,000 shares to an undisclosed strategic buyer. CIMB Standard paid $2.6 million for the stake in March 2007. 

Vijay Sethu, the firm's chief executive, told PEO that the investment in Indo Mines was made from the Southeast Asian Strategic Assets Fund (SEASAF), a $150 million fund nearing its final close.

Indo Mines is a producer of iron ore in Indonesia and is also engaged in the exploration of diamonds, precious metals and industrial metals in Australia, Indonesia and Peru. The company’s primary focus is on Yogyakarta in Indonesia, where it is evaluating a large iron sands project.

The firm had a first close for SEASAF on $100 million in April 2006. Limited partners are comprised primarily of European and Asian institutional investors such as funds of funds and corporates, Sethu said. The Employees Provident Fund of Malaysia, a national social security organisation, is a co-sponsor of the fund.

SEASAF has deployed about $72 million of capital in five investments and one commitment so far.

CIMB Standard makes investments across all stages in infrastructure, energy and natural resource sectors in Southeast Asia.

The firm was advised on the sale by Argonaut Securities.