Investors eye Jaya Grocer Malaysia
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Jaya Grocer Malaysia is attracting the interest of private equity firms wanting to buy a shareholding of up to 49 per cent.
Creador, TPG Growth and a Japanese fund based in Singapore have been shortlisted in a deal said to value the supermarket chain at about RM175 million (US$43.8 million), reports The Star. It quotes sources as saying the exercise for the sale of an equity stake began last year.
Other firms initially interested in a shareholding included the Abraaj Group and Navis Capital Partners.
Jaya Grocer is owned by Trendcell, with its 16 outlets posting RM18 million in earnings last year. The chain opened its first outlet in Petaling Jaya in 2007, and now has outlets in such malls as the Empire Shopping Gallery, KLIA2 and The Intermark.
Jaya Grocer was founded by the Teng family, which also founded Giant Hypermarket and Teng MiniMarket Centre (TMC) in Bangsar. The family sold the Giant chain to Hong Kong-based Dairy Farm group in 1999 for an undisclosed amount. Meanwhile, TMC has been wholly owned and run by GCH Retail (Malaysia) since 1980. Also run by the Teng family is Pasaraya Hero, launched in 2010.
It is unclear if the current sale process, being run through an open-bid system by Deloitte, includes these supermarkets.
Meanwhile, Navis has invested in Jaya Grocer competitor Village Grocer the Big Group, which runs Ben’s Independent Grocer.
Questions & Answers
Q.Which specific investors are currently being considered for a shareholding in Jaya Grocer?
Which specific investors are currently being considered for a shareholding in Jaya Grocer?
Creador, TPG Growth, and a Japanese fund based in Singapore have been shortlisted. These private equity firms are interested in acquiring up to a 49 per cent stake in the supermarket chain.
Q.What valuation is being placed on Jaya Grocer in this potential deal?
What valuation is being placed on Jaya Grocer in this potential deal?
The deal is reported to value the supermarket chain at approximately RM175 million, which converts to US$43.8 million. This figure was cited by The Star, referencing unnamed sources.
Q.Who founded Jaya Grocer and what other retail businesses have they been involved with?
Who founded Jaya Grocer and what other retail businesses have they been involved with?
Jaya Grocer was founded by the Teng family. This family also established Giant Hypermarket, which they later sold, and Teng MiniMarket Centre (TMC). They also run Pasaraya Hero.
Q.Does the current sale process for Jaya Grocer include other supermarket chains linked to the Teng family?
Does the current sale process for Jaya Grocer include other supermarket chains linked to the Teng family?
It is unclear from the article whether the current sale process, managed by Deloitte, includes supermarkets like Pasaraya Hero. The article does not provide specific details on the scope of the sale beyond Jaya Grocer itself.