JAKARTA (TheInsiderStories) – Trans Corporation, an Indonesian conglomeration firm, bought 50 percent shares of the operator Metro Department Stores, PT Metropolitan Retailmart, said the company last week. Chairul Tanjung acquired the shares from Singapore’ Metro Holdings Ltd. and its subsidiaries, Metro Pte. Ltd., for S$25 million (US$18.45 million).
Metro is expected to receive investment gain of S$9.3 million. It said, the divestment is based on willing of buyer and seller which take into account Metropolitan’ market value.
The first store of Metro opened in 1991 in Jakarta. At present, Metropolitan has operate 11 outlets in Jakarta, Bandung in West Java, Surabaya in East Java, Solo in Central Java, Makasar in South Sulawesi, and Manado in North Sulawesi.
“The divestment is in line with the long-term strategy and direction of the Metro Group after the Centrepoint outlet in Singapore recently closed,” the management wrote in Singapore Stock Exchange.
In recent years, Metro has adjusted its retail business in Jakarta in order to respond to changing market conditions. Nevertheless, the retailer continues to focus on its core business in Indonesia and Singapore, along with investment and property development.
Earlier, Metro and Lee Kim Tah Group’ wholly-owned Shawco joint with Trans Corp developed 32-storey residential towers in Bekasi, West Java with total investment of Rp1.99 trillion. The project was completed in 2018 and offered seamless connectivity between cities in the country which drive more economic growth.
The investment will serve as the start of a strategic alliance between Trans Corp, Metro and Lee, where each can contribute its expertise and complement each other particularly in the Indonesian real-estate sector.
The Metro Group’ 90 percent commitment for the Investment is approximately Rp1.79 trillion ($127.86 million). The group fund the investment from internal cash sources.
Last February Trans Corp, unit of conglomeration company CT Corpora get loans $275 million from International Finance Corporation (IFC), to support the development of retail, tourism and property sectors throughout Indonesia.
IFC said, that the investment would be used to support the development of Trans Corp., retail outlets in 25 cities until 2025. The investment also would encourage the development of modern retail networks in the country in order to expand consumer access to products quality.
In line with the Indonesian government’ strategic priorities to develop the tourism sector supported by a World Bank worth $300 million, the IFC loan facility will also be used to help Trans Corp., expand its business in the tourism sector.
Collaborating with Accor, an international hotel management company, Trans Corp plans to build 30 new hotels with nearly 6,000 rooms throughout the archipelago. The establishment of a partnership between IFC and CT Corp was established marked by the signing of an agreement by Philippe Le Houerou, CEO of IFC and Chairul Tanjung in October 2018.
Reportedly, the potential for green investment in Indonesia covers size fields. The biggest potential is in the field of green buildings worth $16 billion, $7 billion in electric vehicles, $3 billion in new renewable energy, $3 billion in clean water, $725 million in waste, and $660 million in public transportation. A total of $30 billion.
US$1: S$1.35, Rp14,000
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