Date:
17 June, 2008
Company:
Magnum Corporation
Title:
CVC Completes Joint Buyout of Malaysia's Leading Gaming Company

CVC Completes Joint Buyout of Malaysia's Leading Gaming Company

June 18, 2008 – Funds advised by CVC Asia Pacific Limited (“CVC”), in partnership with Multi-Purpose Holdings Berhad (“MPHB”) and management, have successfully completed the buyout of Magnum Corporation Berhad (“Magnum”) in a public to private transaction valued at US$1.54 billion.

The Magnum acquisition is the largest M&A transaction completed in Malaysia this year and one of the largest private equity transactions in Asia ex-Japan to date. The transaction demonstrates CVC’s proprietary deal flow, its ability to execute large transactions in challenging market conditions, and its strong commitment to the region. Magnum is CVC’s third investment in South East Asia in the last 12 months.

Magnum is the largest 4 digit gaming operator in Malaysia. It was incorporated in 1968 and was the first private company to be granted a license to promote, operate and manage 4D numbers forecast betting in Malaysia. The Company is headquartered in Kuala Lumpur and operates 483 outlets throughout Malaysia. It reported revenues of US$923 million in 2007. With its strong brand name, sound risk management practices, and loyal customer base, Magnum is well positioned to continue its market leadership. CVC has extensive experience in the gaming sector globally, including investments in William Hill plc and IG Group, and intends to leverage its expertise and network to support Magnum’s growth and operations.

Commenting on the transaction, Dato’ Surin Upatkoon @ Dato’ K K Lau, Managing Director of MPHB, said: “Partnering with CVC in taking Magnum private will enable Magnum to tap into CVC’s strengths. Going forward, we foresee greater value creation in Magnum’s gaming operations, which will contribute positively to MPHB’s earnings.”

CVC set up a Singapore office in March 2007 to increase its focus on South East Asia. Sigit Prasetya, the Head of the Singapore Office, said: “Magnum is Malaysia’s preeminent 4D gaming company with a long history and an outstanding brand franchise. It represents our second investment in Malaysia and reflects our continued confidence in the country’s strong growth prospects. We look forward to working with MPHB and management to support Magnum’s next phase of development and leadership.”

CVC and MPHB were advised by CIMB Investment Bank Berhad, Newfields Advisors, Kadir, Andri & Partners, Clifford Chance, and PwC. Debt financing was led by CIMB Bank Berhad.

Notes to Editor

About Multi-Purpose Holdings Berhad

Multi-Purpose Group is a diversified group of companies listed on the Main Board of Bursa Malaysia Securities Berhad. The Group is principally involved in investment holding and trading; operation of general insurance businesses; operation and management of a licensed four digit numbers forecast game; securities broking and dealing; hotels; and property development and management.

About CVC

CVC Capital Partners is a leading global private equity firm with over US$35 billion in funds raised focused on management buyouts. CVC was founded in 1981 and today has a network of 18 offices throughout Europe, Asia and the United States. Since 1981, CVC has completed over 250 investments across a wide range of industries and countries.

CVC Asia Pacific has been one of the most active private equity investors in the region and has completed 29 investments, for a total transaction size of US$19 billion, covering Greater China, Southeast Asia, Korea, Japan, and Australia.

CVC's current Asia Pacific portfolio includes:

  • Amtek: Singapore's largest precision metal engineering company;
  • GS Paper and Packaging: Malaysia's largest paper and packaging company;
  • Zhuhai Zhongfu: China’s largest beverage packaging company;
  • Plantation Timber Products: a leading manufacturer of wood fibreboards and laminated flooring in China
  • Stella Group: leading integrated travel and hospitality group in Australia;
  • PBL Media: Australia's largest diversified media group (including Channel Nine, ACP Magazines and NineMSN);
  • DCA: the largest diagnostic imaging centre operator in Australia; and
  • Magnachip: a leading semiconductor company in Korea.

CVC's current European portfolio includes:

  • Formula One: the world's leading motor sport management business;
  • Samsonite: the global luggage company;
  • AA: the leading automotive rescue service provider in the UK;
  • Cortefiel: one of the largest apparel retailers in Spain;
  • Debenhams: Britain's leading department store group;
  • Seat Pagine Gialle: the leading directories business in Italy;
  • De la Poste: the Belgian postal services operator; and
  • Post Danmark: the Danish postal services operator.