JAKARTA (TheInsiderStories) - Singapore-based company, Auric Digital Retail Pte. Ltd., announced a voluntary tender offer to acquire up to 40.0 percent of the total issued and fully paid-up shares local retailer, PT Matahari Department Store Tbk (IDX: LPPF). The tender offer price of 2.62 billion shares set at Rp1,530 (US$0.11) a share, said the management today.
The company is a joint venture set up by Singapore’ property developer, OUE Retail Holdings Pte. Ltd., a wholly-owned subsidiary of OUE Retail Holdings and Auric Bespoke I Pte. Ltd. Both hold 60.0 and 40.0 percent of the issued share capital of the company, respectively.
The acquisition is to be funded via a $95 million facility agreement granted by CIMB Bank Bhd and shareholder loans of up to of $150 million, made by the parent to the new subsidiary. As part of the deal, Auric Digital Retail has also agreed to acquire a 5.32 per cent stake in Greater Universal Limited and a 4.8 percent interest in OUE Investments, also wholly-owned subsidiaries of both parties, after the voluntary offer is made.
The new shareholders will hold up to 50.12 percent at Matahari Department upon the completion of the acquisitions. The acquirer has appointed Evercore Asia (Singapore) Pte. Ltd., to act as the exclusive financial advisor in this acquisition.
In 2020, Greater Universal has hold over five percent of local retailer, Matahari Department after get approval from the shareholders last week. The buyer is an active investor in the consumer sector led by Andy Adhiwana joined with his father in-law, Stephen Riyadi.
“This is Auric Capital’ maiden investment in Indonesia and we are pleased that they have recognized the strength in Matahari’ brand, initiatives, and management team,” said John Bellis, the president commissioner (independent) at Matahari Department.
Auric Capital focuses on affordable investment opportunities in Asia and across the emerging markets. The investment company invest in startup directly through seed capital into new ventures, but also through the in-licensing of proprietary technologies for global commercialization.
After decades become publicly listed company in Singapore’ bourse, Riady family, an Indonesia’ conglomeration firm under Lippo Group, made a maiden foray by takeover Sunshine bread maker Auric Pacific Group in 2017. At the time, they have lobbed a S$48.3 million ($36.31 million) to takeover the food company shares from the market.
After hold Matahari Department shares, Auric appointed Monish Mansukhani become the commissioner at the company. Currently, he was a deputy CEO of Greater Universal, a wholly owned indirect subsidiary of the venture capital firm.
Before the pandemic, the retailer planned to open around six outlets during 2020 in Java island. As of 2019, Matahari has operated 169 outlets, of which 157 large format outlets and 12 others are mono-brand stores. Until 2021 the company hopes that there will be an additional 23 new outlets, with the majority in surrounding Java.
But due to the current situation, the company postponed the establishment of new outlets and withdrew all 2020 sales targets and profits. There are a lot of retailers close the store because sales are down and increasingly fierce competition between fellow players.
The unit of Lippo Group is the retailing of consumer goods, including clothes, accessories, bags, shoes, cosmetics and household products. In 2020, the book value of the group was Rp581.11 billion.
US$: RP14,400, S$1.33
Written by Editorial Staff, Email: theinsiderstories@gmail.com
