Indonesia MDS raises ownership in Matahari Mall online for US$12.2 million

Indonesia MDS raises ownership in Matahari Mall online for US$12.2 million

Indonesia’€™s largest retailer selling fashion apparel, beauty, and home products, Matahari Department Store (MDS) has recently increased its indirect ownership in the online marketplace to further broaden its business reach through e-commerce.

This is done by purchasing 7.3 billion shares in PT Global Ecommerce Indonesia (GEI), the parent company of which ownership is derived through its subsidiaries PT Rekata Sinar Bumi and PT Lenteng Lintas Benua.

The agreement is worth about Rp 164.9 billion, translating to about US$12.2 million in transaction. Following this purchase, it will also raise the company’s stake in GEI to a paid-up capital of 12 percent in total, increasing by 3.62 percent.

Prior to this, MDS has also raised its stakes in GEI back in January to 10.33 percent. But the company’s ownership has also since been diluted to 8.38 percent due to investments made by other shareholders.

With potential additional investments from other players which could further dilute MDS’ shares, this has resulted in the company’s decision to expand its control gradually.

Matahari Mall warehouses and ships about products from 5000 affiliated seller and web portal hosts. Besides, the online retailer also produces goods and sells them independently with home electronics currently seeing robust demand.

On the other hand, Matahari Mall also handles apparel, clothing accessories and food. The company’s monthly sales are reportedly outpacing year-earlier figures by 10 percent.

“The company sees large potential in the e-commerce sector. With increased stakes in the platform, Matahari secures opportunities for huge returns in the future. We will also be able to synergise into Matahari Mall’s existing platform, which will, in turn, widen reach across the country, as well as boost Matahari’s net profit,” MDS management team commented.

It is also reportedly said that MDS intends to maintain a stake of up to 20 percent in GEI by injecting an estimated Rp 590 billion in stages.

MDS currently owns and operates 148 stores in 68 cities across Indonesia whose locations include Jakarta, Yogyakarta, West Kalimantan and East Nusa Tenggara.

By Vivian Foo, Unicorn Media

SATS to acquire 10% stake in Evergreen Sky Catering Corp for US$22.3 million from Malaysia Airlines

SATS to acquire 10% stake in Evergreen Sky Catering Corp for US$22.3 million from Malaysia Airlines

Airport services group SATS has entered into a conditional share sale agreement with Malaysia Airlines in acquiring a 10 percent stake in their in-flight meals caterer Evergreen Sky Catering Corporation (ESCC).

As per details of the agreement, SATS will be acquiring 11 million ordinary shares in the capital of Evergreen Sky Catering for RM100 million (about US$22.3 million), adding to its originally owned 16.5 million ordinary shares which represent 15 percent in ESCC.

Following the acquisition, the Singapore-listed SATS would now own 27.5 million ordinary shares in the capital of ESCC, which represents 25 percent of the total issued ordinary shares in the capital of ESCC.

With this, ESCC would also become an associated company of SATS, the provider of gateway and food solutions announced during its filing at the Singapore stock exchange on Tuesday.

Commenting on the deal, SATS said, “The proposed acquisition is in line with the company’s strategy of growing the scale of its food business and enhancing its connectivity to better serve its customers across key airports in Asia.”

The acquisition is not expected to have any material impact on the company’s net tangible assets per share and consolidated earning per share for the current financial year.

Shares of SATS closed at S$0.02 cents higher at S$4.85 on Tuesday.

By Vivian Foo, Unicorn Media