Sep 19, 2010

Matahari considers to sell Hypermart

After disposing PT Matahari Department Store Tbk (LPPF), retailer PT Matahari Putra Prima Tbk (MPPA), controlled by Lippo Group and majority owned by Riady family, considers to dispose its hypermarket business dubbed Hypermart in a bid to develop core business.
In a press statement submitted to Indonesia Stock Exchange on Friday, Matahari Putra Prima has mandated Merrill Lynch (Singapore) Pte Ltd to hold a comprehensive strategic analysis toward its business. In Return, Merrill Lynch will provide a major recommendation about the business.
The company plans to optimize its value by considering business unit disposal, acquisition of other companies, financing through loan or equity, restructuring, or business unit spin-off, and strategic alliances.
Matahari President Director Benjamin Mailool said as pioneer in the hypermarket segment in Indonesia, the retailer will focus on ritel business. Its hypermarket business grew 25.8% in 2009 and 18.2% as of May 2010 year on year.
Matahari Putra Prima estimates that its food business, managing Hypermart and Foodmart, will reach Rp7.5 trillion total sales and Rp9.8 trillion in 2010 and 2011 with Rp400 billion and Rp620 billion EBITDA.
The company operates 50 hypermarket, 25 supermarket, and 53 pharmacy stores, and 90 family entertainment centers, 18 internationally book stories, and 91 department stories in Indonesia as of June 2010.    

Disclosure: No position at the stock mentioned above.

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