CVC Offers $1.1 Billion to Buy Out Nirvana Asia

HONG KONG—Private-equity firm CVC Capital Partners said Friday that it offered $1.1 billion to buy out Nirvana Asia Ltd., Asia's largest funeral-services provider by revenue.

CVC said in a statement on Friday that it would pay HK$3.00 a share to take private Hong Kong-listed Nirvana—the same price per share that the company initially listed at in December 2014. The offer represents a more than 22% premium to where its shares last exchanged hands.

Trading in Nirvana was suspended last week, pending information regarding a takeover or merger, after its shares rose suddenly.

Nirvana said Friday in a separate statement to the Hong Kong stock exchange that its shares rose by more than 3% every day between June 27 and June 29 despite the broader Hang Seng Index staying mostly flat. The stock's average daily trading volume was more than 3 million shares, up from an average of 1.3 million in the previous 30 trading days, it added. Nirvana said it was "not aware of any reason" for the irregular trading.

CVC said Friday that Nirvana founder Tan Sri Kong would remain as chief executive of the company.

London-headquartered CVC is a top global private-equity firm. It owns a stake in motor-racing franchise Formula One Group and has had a longstanding presence across Asia.

Nirvana, based in Kuala Lumpur, was the first funeral-services company in Asia to offer packages to consumers while they are still alive. Almost three-quarters of its revenue still comes from Malaysia.

Since its listing in Hong Kong, however, Nirvana's shares have sunk as the company struggled to expand in China, which has a rapidly aging population but tight restrictions on the ownership of burial plots.

UBS advised Nirvana, while J.P. Morgan Chase & Co. advised CVC.

Write to Wayne Ma at [e-mail]

(END) Dow Jones Newswires

July 08, 2016 09:35 ET (13:35 GMT)

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