Magazines Archives - 2011 Jan
Matahari keeps Hypermart business, looks for global partner for expansion
INDONESIAN hypermarket retailer PT Matahari Putra Prima Tbk has decided to keep its Hypermart Food Retail business, it stated this month, following two rounds of takeover bids for the chain from buyers such as South Korean conglomerate Lotte Shopping, US private-equity firm Carlyle Inc, and USbased retail giant Wal-Mart Stores Inc.
The company said that it will retain and expand its Hypermart business as a wholly-owned business division, and is on the lookout for a global partner instead.
We would like to bring in a strong global partner, and are determined to retain and grow our Hypermart business and to streamline other non-core operations, noted Benjamin Mailool, president director of Matahari Putra Prima.
Last November, the company revealed that it was planning to sell off its hypermarket businesses, attracting buyers from across the globe eager to set foot in the lucrative Indonesian retail scene, which reportedly emerged unscathed from the global downturn.
However, under the advisement of global investment bank Merrill Lynch (Singapore) Pte Ltd, the retailer was recommended to divest its non-core, non-food retail assets, and expand its food business instead.
Said Benjamin: We welcome the interest of global players to invest or acquire a substantial interest in Matahari Putra Prima. But it is important to note at this moment that there is no assurance that any of the plans will materialise.
The company also disclosed that it intends to open at least 13 Hypermart stores this year and up to 80 stores over the next five years.
Matahari, owned by Indonesian business conglomerate Lippo Group, has 38 hypermarkets in 21 cities across Indonesia, with annual sales of over US$1 billion. Last year, Matahari sold off its department store chain to US private-equity group CVC Capital Partners Ltd.
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