Alternative investments major CVC Capital Partners is reportedly planning to divest its 40% stake in the Philippines-based logistics company Fast Group, according to a MergerMarket report.
The move comes less than five years after the private equity firm acquired the stake for $124 million through CVC Capital Partners Asia IV. The Chiongbian Family, which founded the company in the 1970s, holds 60%.
The report said CVC has hired Bank of America to advise on the planned exit and aims to start the process in July.
This will not be the first time CVC is exploring the sale of its minority stake in the third-party logistics company. In June 2023, Bloomberg reported that the firm was in talks with potential buyers for the stake.
The latest report said the sale could value Fast Group at $1 billion.
Fast Group is present in transport logistics, warehouse management, selling distribution, toll manufacturing, and value-adding supply chain services.
Its clients include big multinational and local conglomerates such as Nestlé, Johnson & Johnson, Colgate-Palmolive, Procter & Gamble, and NutriAsia, among others, as well as big pharmaceutical and healthcare companies like Zuellig and Green Cross.
Fast is the third investment of CVC Capital Partners in the Philippines. In 2013, the PE firm acquired Manila-based business process outsourcing firm SPi Holdings through its Asia Outsourcing Gamma Limited. It sold the company in 2017 for $300 million.
Its first investment in the Philippines was in 2011 when it acquired a 15% stake in Rizal Commercial Banking Corporation for $119 million.
