CVC has engaged a financial adviser for the negotiations, said the sources. One of the sources said the talks were still at an early stage, and another source said a deal could fetch as much as $300 million.

Both said buyout firms were among the interested parties with whom talks were being held for the stake sale.

CVC declined to comment, while GarudaFood did not respond to Reuters' queries. The sources did not want to be identified as they were not authorised to speak to the media.

Europe-based CVC is looking to exit a profitable investment at a time when cashed-up private equity firms are scouting for high growth opportunities in Asia.

Indonesia, Southeast Asia's largest economy, reported second-quarter gross domestic product growth of 5.4%, the fastest growth rate in a year.

CVC invested $150 million in GarudaFood in 2018, just before the company listed on the Jakarta stock exchange, according to CB Insights data.

Founded more than four decades ago, GarudaFood is a leading branded consumer food producer. It makes snacks such as biscuits and peanuts, and markets them under the Garuda, Gery and Leo brands.

Based on Monday's stock price of 535 rupiah ($0.0360), GarudaFood had a market value of $1.34 billion. Its shares have climbed about 47% over the past year.

Indonesian tycoon Sudhamek Agoeng Waspodo Soenjoto's family owns about 69% of GarudaFood, Refinitiv data showed. Soenjoto is ranked as one of Indonesia's top-50 richest persons by Forbes.

Reuters was not immediately able to ascertain the names of the buyout firms holding talks with CVC on GarudaFood.

CVC's Indonesian portfolio includes Siloam International Hospitals, sports and children's products retailer MAP Aktif Adiperkasa and pharmaceutical distributor SOHO Global Health.

CVC also in talks to sell its 26% stake, currently worth about $240 million, in Siloam, said two separate sources.

CVC declined to comment, while there was no response from Siloam to Reuters' queries.

Siloam made its debut offering on the Indonesian bourse in 2013 and has a total market value of $930 million.

CVC first bought a 15% stake in Siloam in 2016 from property company Lippo Karawaci and fund firm Ciptadana, besides participating in Siloam's rights issue.

Siloam, which started in 1996, operates 41 hospitals in Indonesia, according to CVC's website.

(Reporting by Anshuman Daga and Yantoultra Ngui in Singapore and Kane Wu in Hong Kong; Editing by Muralikumar Anantharaman)

By Anshuman Daga, Kane Wu and Yantoultra Ngui