Indonesia’s largest grocery retailer PT Matahari Putra Prima has announced it will keep its hypermarket business, Hypermart, which had reportedly attracted interest from Wal-Mart Stores and Casino last year.
Matahari plans to bring on a global partner to help it expand the Hypermart business and is looking to offload non-core, non-food retailing assets.
The company said yesterday (10 January) that, following the recommendations of a review by Merrill Lynch, it would seek a partnership to help it improve economies of scale, provide better access to financial and technological resources, better its bargaining power with suppliers and enhance branding.
The company’s president director Benjamin Mailool said the company would “welcome the interests of global players to invest or acquire a substantial interest” in Matahari Putra Prima. However, he added that there is “no assurance that any of the plans will materialise”.
According to earlier reports, Matahari was originally seeking to dispose of the hypermarket unit. Four firms were said to be interested in investing in the business including Lotte Shopping, Wal-Mart Stores, Casino and South Korean retailer Shinsegae Co.