Multipolar becoming more aggressive in China, Indonesia | Company data
(The Insider Stories) – Lippo Group subsidiary PT Multipolar (MLPL) is strengthening its presence in China as one of the biggest markets in the world and boosting its business at home amid strong domestic growth, while extending a partnership with a Singaporean sovereign wealth fund and looking at partnering with a Japanese investor.
Multipolar built its first hypermarts in China 2011 and acquired 100% of China-based retailer Robbinz Department Store the same year, and it plans this year to open four new hypermarts and Robbinz outlets in China for a total investment of $18 million, according to finance director Reynold Pena Ong says. Multipolar has three hypermarts, in Tianjin, Suzhou and Changzou, and five Robbinz outlets, in Tianjin, Chengdu, Yangzou, Suzhou and Changzhou.
In Indonesia, Multipolar via unit PT Matahari Putra Prima (MPPA) plans to open 20-22 hypermarts across the country, especially in the east, and is preparing 650 billion rupiah ($67 million) for the two projects. It plans new Hypermarts in Jakarta satellite city Bekasi, East Nusa Tenggara provincial capital Kupang, Bali island and the provinces of South Sumatera, North Sulawesi, Maluku, East Java and East Kalimantan.
Since launching its Hypermart brand in 2004, Matahari has become one of the biggest food retailers in Indonesia via its Matahari Food Business divison, which owns Hypermart, Foodmart and Boston Health & Beauty, with 80 Hypermarts, 28 Foodmarts and 79 Bostons in 55 cities in 26 provinces.
To extend partnership with Temasek
Multipolar also appears set to extend its partnership with Singapore sovereign wealth fund Temasek Holdings Ltd. after Temasek took a reported $300 million stake in Matahari in January via an exchangeable rights subscription with Temasek subsidiary Anderson Investments Pte. Ltd, reportedly giving Anderson access to 26.1% of Multipolar shares from the public float of 43.7%, while Multipolar retains 50.2% and is majority shareholder. Underwriter PT Ciptadana Securities had acquired 23.1% of Matahari from the public as of April 19, reports say.
Multipolar and indirect subsidiary Asia Color Co., which it co-owns with CVC Capital Partners, sold part of PT Matahari Department Store (LPPF) in a IDR13 trillion ($1.4 billion) private placement to investors that included Temasek, Blackrock Inc. and Goldman Sachs Group Inc.
Multipolar is also reportedly looking to partner with Mitsui Group in satellite TV services via its PT Indonesia Media Televisi subsidiary
Besides Temasek, Multipolar is looking to form a partnership with Japan’s Mitsui Group for its satellite television services. Multipolar director Harijono Suwarno said that Mitsui would be its new partner within PT Indonesia Media Televisi.
Multipolar owns 50.2% of retail units Matahari Putra Prima 20.5% of Matahari Department Stores, while its financial services division holds 100% of PT Bank Internationalnobu and 99.9% of PT Nadya Putra Investama. In other sectors it owns 99.9% of PT Multipolar Technology, 100% of helicopter charter service PT Air Pasifik Utama, 50.2% of PT Surya Cipta Investama, 65.9% of PT Multifiling Mintra Indonesia and 33.8% of PT First Media.
