Matahari on sale

Management of PT Matahari Putra Prima Tbk open chances to sell assets of Matahari Department Store (MDS) to a Japanese retailer following the restructuring and swap the assets to PT Matahari Department Store Tbk (MDS).

Matahari Putra finalized the restructuring of MDS ownership to PT Pacific Utama Tbk which now changes into PT Matahari Department Store Tbk in December 2009 following the takeover of department store assets through ownership transfer of 90.76 percent.
Management of Matahari Putra said the asset divestment is expected to provide flexibility to MDS for the further expansion including external funding search.
Matahari promises to develop MDS despite the fact that it is indirectly on the retail business portfolio. The portfolio left now includes Hypermart, Foodmart, Times Bookstore, and Time Zone. But MDS asset divestment is deemed the preparation of Matahari to sell the department store.

Analyst of PT Mandiri Sekuritas Ari Pitoyo related the MDS divestment issue to the Japanese retailer in the daily research January 19. if compared to the acquisition valuation of PT Makro Indonesia, MDS valuation is the same as the current Matahari market capitalization.
October 2008, Lotte, the South Korean retailer acquired 75 percent Makro shares worth 294 billion wons or US$223 million. The company affiliated to the Singapore's Lotte Shopping Holdings Pte plans to buy another 25 percent stocks so as to have full control of Makro worth 385.9 billion wons or US$292.7 million.