JAKARTA May 21 Indonesian retailer Mitra
Adiperkasa said it will sell majority stakes in its
Domino's Pizza and Burger King chains to keep its capital to
develop its other franchises.
Mitra Adiperkasa has reached an understanding with Everstone
Capital, a private equity firm from Singapore, to sell a
majority stake in Domino's Pizza, vice president director V.P.
Sharma said on Wednesday at a public presentation.
It will keep a 49 percent stake in the pizza chain.
The company is also is talks with a number of potential
buyers, including Everstone, to sell a majority stake in its
Burger King franchise business.
Sharma said the fast food chains have to have about 120
outlets to give "meaningful profit" for the company but Mitra
Adiperkasa has limited capital to invest in the business.
Domino's Pizza now has about 60 outlets and Burger King has 48
"Our balance sheet is already stretched. By having a
strategic partner, we can invest our limited capital into other
brands like Starbucks," he said.
Mitra Food and beverages contribute about 13 percent of
Mitra Adiperkasa's total revenue. Its biggest contributor in the
food and beverage division is Starbucks.
Most of Mitra Adiperkasa's revenue comes from its fashion
franchise business, which includes brands such as Zara,
Marks & Spencer <MKS.L, Top Shop.
Sharma said the company would release more details in the
next few days.
(Reporting by Fransiska Nangoy, editing by Jonathan Thatcher
and Jane Merriman)