Sign up | Log in



Home  >>   Daily News  >>   Indonesia News  >>   Retail  >>   Four international retailers vie for Indonesian retailer
NEWS UPDATES Asean Affairs   4  December 2010

Four international retailers vie for Indonesian retailer

Related Stories

November 12, 2010
Middle class market attracts Indonesian investment

November 3, 2010
Korean firm eyes Indo retailer

November 23, 2009
French retailer takes on Indonesian antitrust ruling

July 28, 2008
Indonesia Retail Market:
Matahari, Hero buoyant despite high inflation

Attracted by the spending power of Indonesian consumers, four international retailers have entered bids to acquire a controlling stake in retailer Matahari Putra Prima in a deal valued at more than US$1 billion.

Matahari, the country's largest retailer by market value, released a statement on Friday confirming it had received offers and that it had appointed Merrill Lynch to facilitate discussions with the interested parties.

"Merrill Lynch informed us that there were four strategic buyers, with one being South Korea's Lotte," Danny Kojongian, Matahari's spokesman said. "However, we can't disclose the other bidders due to confidentiality."

Reuters reported in November that Wal-Mart Stores and Casino Guichard-Perrachon were among those who had advanced to the final round of bidding for Matahari.

The sale has also reportedly drawn interest from the Carlyle Group, a Washington-based private equity fund, and South Korean retailer Shinsegae.

Matahari said it would pay out Rp 1 trillion in dividends to its shareholders next year because it was flush with cash from the sale of its department store unit earlier this year.

Matahari's food business, Hypermart, also managed to record a solid performance in the first nine months this year. Through to September, Hypermart reported sales of Rp 5.6 trillion, an increase of 17 percent compared with same period last year.

The Matahari sale was, however, far from certain, Danny said, with the company still reviewing its options.

Control of Matahari would give the new owner a powerful position to rival Carrefour in Indonesia.

According to Matahari, it has 51 hypermarkets, 25 supermarkets, 53 drug stores, 90 family entertainment centers and 18 bookstores, as well as a strategic alliance operating 92 department stores in more than 50 cities across the country.

It has plans to open at least 13 hypermarkets next year and 80 outlets over the next five years.

Lotte Group, which is the frontrunner to acquire Matahari, has 21 outlets in Indonesia, Tong Yang Securities said in a report released on Nov. 4.

Acquiring a controlling stake, or just Matahari's stores, would allow the South Korean giant to overtake Carrefour as the largest hypermarket operator in the country, the brokerage said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand