CVC Capital Partners is planning to launch the sale of its 40% stake in Philippines-based logistics company Fast Group, according to three sources familiar.

The Europe-based private equity manager has hired Bank of America to advise on the planned exit, the sources said, adding that the sell side has soft-sounded potential bidders, including strategics.

It aims to start the process in July, the first and second sources said.

CVC invested USD 124m in Fast Group in 2020. The company’s founders – the Chiongbian Family – owns 60%.

This upcoming sale process is likely to involve CVC’s minority stake only, both sources said, with one of them and a third source adding that the sell side is likely to value Fast Group up to USD 1bn.

CVC explored a sale in 2023, according to a newswire report. It was also considering a public listing, President and CEO William Chiongbian II told Mergermarket in August 2023.

While the company received investor interest two years ago, a sale in 2023 would have been premature, according to the second source.

There was an offer to buy a majority stake, but it would have been complicated due to foreign investment restrictions on Fast Group’s businesses, the first and second sources said.

As per Philippine laws, foreign ownership is restricted when it involves real estate. Warehousing operations restrictions could be eased if the underlying real estate is not included, a sector banker said.

Fast Group had earnings before interest, tax, depreciation and amortisation of more than USD 50m for the year through December 2024, the first and second sources said. It is looking at earning about USD 60m this year, they added. The company’s distribution business accounts for two-thirds of its revenue, with the rest coming from logistics.

The company, with more than 13,000 employees, operates a network of warehousing, selling, distribution, and transport services covering inland, air, sea forwarding and courier services in the Philippines.

Bank of America and Fast Group declined to comment. CVC did not respond to a request for comment by press time.