S.Korean Retailers Offer to Buy Indonesia's Matahari Unit

 















Two South Korean retail heavyweights said on Friday they have submitted letters of intent to buy the discount division of Matahari, Indonesia's second-largest retailer. 

Top retailer Shinsegae Co. and its smaller rival Lotte Shopping Co. said in regulatory filings that they are reviewing whether they will file initial bids for the Indonesian retailer's unit. 

Industry sources estimate a takeover of Matahari's discount division would cost 1 trillion won (US$900 million). 

Matahari has 38 discount stores and 20 supermarkets in 21 cities throughout Indonesia. Last year, the company posted about 800 billion won in sales. 

The two retail giants are competing to acquire Matahari's discount segment as part of efforts to diversify their profit sources.

Lotte Mart, the discount store division of Lotte Shopping, opened its 21st store in Indonesia in October, while Shinsegae has no discount stores in the country.Source: Tradingmarkets