Carlyle Group Nears Deal for Stake in GarudaFood

The Carlyle Group is set to make its first direct investment in Indonesia: the private equity firm reportedly is close to acquiring a 25% stake in GarudaFood for about $200 million.

Jakarta-based GarudaFood sells instant food and snacks internationally. The deal would value the whole company at about $800 million.

Carlyle outbid Japanese beverage firm Suntory, but as of Sunday, no formal agreement had yet been signed between the buyer and seller. Barclays Capital is acting as adviser for the sale.

Indonesia, Southeast Asia's biggest economy, is increasingly attracting foreign investors as spending rises from an emerging middle class. Buyout firms TPG Capital and CVC have already bought into consumer, finance and resource plays in the country.

Carlyle is also interested in a stake in the hypermarket unit of Matahari Putra Prima, Indonesia's biggest retailer by market value, which had been in talks about partnering with Walmart (NYSE: WMT).