JAKARTA (TheInsiderStories) - PT Sumber Alfaria Trijaya Tbk (AMRT), the operator of Alfamart, has allocated funds around Rp3 trillion (US$208.33 million) in this year, the management announced last week. The funds will be used to finance the addition of new outlets and extend the lease of the outlets.
Director of the company, Trijaya Solihin, said the company will use part of the capital expenditure allocated to build around 800 new outlets, which currently has reached 17,538 units. At the end of 2020, 73 percent of the majority of Alfaria outlets are spread across Java.
Sumber Alfaria plans to raise funds through the rights issue program. The company plans to offer as much as 5 billion shares. The shareholders who do not exercise their rights will be diluted to a maximum of 10.75 percent.
Recently, the company has announced to sell of all its share in PT Sumber Wahana Sejahtera to PT Galaxy Mitra Global. The unit managed the express delivery service with brand Alfatrex, which was founded in 2017.
The director, Tomin Widian, explained, the issuer had signed an indicative term sheet with the buyer on March 25. He did not specify the divestment value of the 99.96 percent of Alfatrex stake and the target for the settlement. Until third quarter of 2020, the provider having total assets before elimination of Rp21.87 billion (US$2.45 million).
Beside sale the assets, Alfamart now faces debt maturing bonds worth Rp1.01 trillion on April 12, 2021. The notes issued by the operator of Alfamart in 2018 and has coupon rate 7.5 percent per year. Beside prepared debt refinancing, in this year, the issuer prepared capital expenditure of Rp2.5 trillion to adding new outlets across the archipelago.
Solihin, the retail-chain operator aimed to open around 750 new outlets in 2021. Until the third quarter of 2020, the number of Alfamart outlets recorded 15,102 units. Sumber Alfaria also targeting to improve the digital services through Alfamart digital platform (Alfagift).
The mini market provider also developed a new concept stores called Alfaexpress and Alfa X. Alfaexpress carried the concept of a convenience store with a more modern appearance and provides local flavor products with friendly service and in specific locations such as stations, rest Areas, airports, ports, train station, offices, and hospitals.
The retailer also continues to develop its work abroad. In November 2020, the company has inaugurated the 1,000th outlet in the Philippines after started the investment in 2014 in the neighboring country. Sumber Alfaria have been quite aggressive in adding stores throughout 2020 despite the COVID-19 pandemic.
This was revealed by the results of the Fitch Ratings rating which confirmed Alfamart’ long-term national rating at AA with a stable prospect. This is supported by a healthy business profile and the resilience of the mini-market compared to other modern retail formats.
US$1: Rp14,400
Written by Editorial Staff, Email: [email protected]
