Lotte submitted final offer to Matahari

Lotte Shopping Co. submitted a final offer on Jan. 7 for Indonesia's biggest retailer in Indonesia, PT Matahari Putra Prima Tbk.

Lotte, was one of the four potential buyers for the Matahari. The others are Wal-Mart Stores Inc., French retailer Casino Guichard- Perrachon SA, Carlyle Group and Hong Kong's Dairy Farm International Holdings Ltd. were among the companies that have looked at the assets

Matahari, announce it will seek a global partner to help develop its Hypermart business after deciding to retain the unit. The retailer may sell its non-food assets as it seeks a
partner that can provide technological help and improved buying terms for its hypermarkets, Jakarta-based Matahari said in an e- mailed statement today.

The company made the decision after receiving recommendations of a review by Bank of America Corp.'s Merrill Lynch unit. A partnership may take the form of a global retailer buying a majority stake.
Matahari's hypermarkets, with annual sales of about US$1 billion, rival Carrefour SA in Southeast Asia's largest economy and most populous nation, which is forecast to expand 6.3
percent this year. Matahari, has 52 of the large-format outlets that combine features of a
supermarket with a department store.

Matahari has a commitment from Merrill Lynch to support the retail business so it may have many options for its expansion plans. The company will invite a strategic partner from global retail players to enter Matahari in the form of investment or majority stake.

Matahari, founded in 1958, also has 25 supermarkets, 53drug stores, 90 family entertainment centers and 18 book shops as well as a strategic alliance operating 92 department stores
in more than 50 cities across Indonesia.

Matahari sold control of its department-store arm to a unit of CVC Capital Partners Ltd. for IDR7.2 trillion in January last year.