JAKARTA (infolog): The buy-back plan, which aims to solidify Matahari’s position as Indonesia’s largest and most profitable retail platform, may result in the purchase of up to 7 per cent of the company’s shares.
In addition, it will be changing its name from “Matahari Department Store” to “Matahari” to better reflect the company’s positioning as a multi-faceted retail platform.
“As the largest shareholder in Matahari, we fully support the board’s buy-back proposal, and will not be selling any shares,” said Eddy Handoko, Multipolar’s President Director.
Next year, Matahari will make further investments in logistics to support its fast-growing e-commerce business and increasingly profitable third-party services, according to CEO and Vice President Director Richard Gibson.
The company plans to increase capital investment in its subsidiary PT Matahari Nusantara Logitik by approximately Rp 500 billion ($34 million), which will fund the purchase of a new multi-purpose distribution facility with a size in excess of 50,000 m2.
Matahari is the largest department store in Indonesia, with 155 stores in 74 cities across Indonesia. Its merchandise is available at its stores and also online at Matahari.com.
Matahari employs more than 40,000 and partners with approximately 850 local and international suppliers.
Last year, Matahari closed its second tranche of investment, in the last one year, which takes its stake to nearly 16 per cent in local e-commerce startup MatahariMall.com.
Today, the strongest-funded e-commerce player in Indonesia is Tokopedia, backed by global giants like Alibaba which recently invested $1 billion in the company.
Alibaba-backed Lazada is another large player in the region and with the predicted entry of large cash rich players like Amazon, JD.com and Salim group, there is expected to be growing consolidation among the smaller or mid-sized players.
Some other mid-sized players in the region include Zalora Indonesia, Bhinneka.com, OLX, Blibli, and Elevenia. (dealstreetasia.com/ac)