HK Private Equity Firm to Buy Additional 42% Stake in Cipaganti Citra Graha


JANUARY 05, 2015

Jakarta. Terra Investment Holding, a Hong Kong-based private equity firm, is continuing its planned acquisition of transportation service provider Cipaganti Citra Graha through a tender offer of Rp 177 billion ($14 million) for an additional 42 percent stake, highlighting its expansion efforts in Indonesia.

The firm seeks to buy 1.68 billion — equivalent to 42.33 percent — of Cipaganti Citra Graha at Rp 105 per share, according to an official statement from Terra Investment management recently.

In October, Terra Investment signed a conditional sales and purchase agreement to acquire 47.99 percent of Cipaganti Citra Graha’s shares from 12 different stakeholders at Rp 100 per shares, putting the total transaction at Rp 173.9 billion.

The firm previously had bought 4.95 percent of Cipaganti Citra Graha through its subsidiary, Asia Argentum Assets, bringing its total ownership in the transportation firm to 48.57 percent.

The private equity firm did not specify whose shares it will buy. Aside from Terra Investment and its subsidiary, Cipaganti Citra Graha's owners include Parallax Venture (9.09 percent), Cipaganti Global Corporindo (7.05 percent) and the public (35.28 percent).

Terra Investments is affiliated with William JB Chongbian II, who controls Chongbian Group — one of the biggest transportation and logistics firms in the Philippines.

The business tycoon, who was appointed commissioner at Cipaganti Citra Graha in September, is acquiring the transportation firm to diversify the group’s portfolio investment outside the Philippines.

Investor Daily