* Temasek to buy 26.1 pct stake in retailer Matahari
* Lippo's Multipolar to buy the $300 mln stake for Temasek
* Matahari is Indonesia's No.2 hypermarket operator
JAKARTA, Feb 4 Singapore's state investor
Temasek Holdings will indirectly buy a 26.1 percent
stake in Indonesia's second biggest hypermarket-chain operator
worth $300 million via PT Multipolar, as it aims to
tap growing consumer demand in Indonesia.
Temasek, via its unit Anderson Investments, will buy the
$300 million equity-link instrument issued by a unit of
Multipolar and then it will use the fund to buy a 26.1 percent
stake of PT Matahari Putra Prima from the market, said
Multipolar's corporate secretary Chrysologus Sinulingga.
The deal, if materialised, will ultimately make Temasek one
of the major shareholders in Matahari, beating international
retailers such as Wal-Mart Stores Inc which have been
trying to buy into the company over the last few years.
Multipolar, which is controlled by Indonesian conglomerate
Lippo Group, is the controlling shareholder of Matahari with a
50.2 percent stake.
"It's a win-win deal for Temasek and Lippo," said Jemmy
Paul, equity fund manager at Jakarta's PT Sucorinvest Asset
Management. "Temasek finds consumer exposure in Indonesia given
the hypermarket growth story, while Lippo is able to find a
Foreign direct investment reached a record high in Indonesia
last year. Growing domestic consumption, along with increased
public spending and investment, has pushed GDP growth to over 6
percent for the past two years.
Hypermart is Indonesia's second-biggest hypermarket chain
operator after PT Carrefour Indonesia, with 81 outlets in the
world's fourth most populous nation.
However, Hypermarket growth has been challenged by
minimarkets over the past few years as middle class consumers in
Southeast Asia's biggest economy are shifting their preference
to minimarkets over their large rivals.