The investment arm of a Malaysian bank has taken a 10 per cent stake in the operator of 7-Eleven in Indonesia.

CIMB Private Equity has spent US$25 million buying the share of PT Modern Internasional (MDRN), which has the Indonesian rights to the 7-Eleven convenience store franchise.

“We are excited about this opportunity to support our long-term business partner MDRN, as they continue to grow the 7-Eleven franchise in the attractive Indonesian retail space,” said CIMB Group CFO and CEO of group strategy and strategic investments Kenny Kim, in a statement.

“This investment strengthens our business relationship and further cements our support for MDRN’s business, which is another testament of our commitment to providing a viable third asset class via private equity to help our partners grow.”

The cash will be used to open new stores and upgrade existing ones.

MDRN, listed in 1991, was founded in 1971, initially to distribute Fujifilm products. It currently operates 175 7-Eleven stores, primarily in the capital city of Jakarta, which account for 60 per cent of group sales. The investment was made via the issue of additional shares.