Apr 17, 2010

Carrefour, Chairul & legal cases

Indonesian tycoon Chairul Tanjung yesterday announced a 40% acquisition deal of PT Carrefour Indonesia, one of Indonesia's largest retailer which is now battling againts Commission for the Supervision Business Competition (KPPU) in relation to acquisition of PT Alfa Retailindo Tbk (ALFA) by Carrefour Indonesia.
Carrefour's acquisition deal by Chairul Tanjung via PT Trans Retail worth US$300 million emerges speculation that French giant retailer is seeking alliance to solve some problems.   
Following the acqusition, Trans Retail controls 40% stakes in Carrefour Indonesia, Carrefour SA holds 39%, Carrefour Nederland BV owns 9.5%, and Onesia BV holds the remaining.
According to Chairul during a press conference yesterday, Trans Retail secures 18 months bridging loan facility worth US$350 million from a consortium of Credit Suisse, Citi, JPMorgan Chase, and ING.
"Around US$300 million is used to bankroll the acquisition and the remaining goes to Carrefour as working capital," he said.
Following the acquisition, Trans Retail deserves to place four commissioners and two directors in Carrefour Indonesia. Chairul Tanjung is appointed to be Carrefour's President Commissioner, while Hendro Priyono, former Head of Indonesia's State Intelligence Agency (BIN) is mandated as Commissioner.
Carrefour's Chief Executive Officer Shafie Shamsuddin said Trans Retail buys 40% stakes in Carrefour due it operates strategic retail business, financial, life style, food and beverage, and travel.
In financial business, CT Corporation manages PT Bank Mega Tbk, PT Bank Syariah Mega Indonesia, PT Mega Capital (brokerage), PT Asuransi Jiwa Mega Life, and PT Para Multi Finance.
CT Global Resources, subholding of CT Corporation, operates and manages oil palm producer PT CT Agro with total area of 60,000 hectares in East Kalimantan. PT CT Energy, moving in power plant business, operates in West Java and Sumatra. 
Under Trans Corpora, CT Corporation manages the lifestyle and entertainment companies, Trans7, Trans TV, Trans Coffee, Trans Lifestyle, PT Mahagaya, PT Trans Kalla Makassar, PT Bara Bali, PT Batam Indah Investindo, Bandung Super Mall, and PT Mega Indah Investindo.
Legal cases
Besides battle with KPPU, Carrefour also is fighting with Lippo Group, owned by Indonesian conglomerate Riady family.
Carrefour has the legal case with operator of Pluit Village, PT Duta Wisata Loka, which owns Hypermart, Carrefour's fierce competitor, and under Lippo Group.
Carrefour operates 79 stores in 22 different cities in Indonesia. It will add 13 new stores this year in Jakarta, Pekalongan, Mojokerto, Pontianak, Singaraja, and Batam. 
Para Group said it expects more than US$350 million of cash during a global bond offer this year. The proceed will be used to refinance the loan facility it obtained from the consortium of four banks.
"A roadshow will be held soon in Hong Kong, Singapore, New York, and San Francisco," Chairul said.
Credit Suisse, Citi, ING, and JPMorgan are mandated to arrange the bond issue.

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