Matahari in Talks to Sell 20%-30% Stake

PT Matahari Putra Prima is in talks with potential buyers to sell between a 20% and 30% stake in the company, two sources familiar with the deal said Friday.

An executive with Lippo Group, the single largest owner in Matahari via PT Multipolar, told Dow Jones Newswires that Matahari "is in serious discussion" with Lotte Shopping, Casino Guichard-Perrachon SA, Walmart and Carlyle on the stake sale.

The executive said that Lippo is offering the investors an option to either buy part of Multipolar's stake in Matahari, or buy Matahari's stake via a rights issue that could be carried out for the purpose.

When contacted, South Korea's Lotte Group reiterated that it is interested in Matahari's hypermarket unit, and not Matahari, while a spokesperson at Casino Guichard-Perrachon declined to comment. Walmart and Carlyle couldn't immediately be reached for a response.

The sources expect the transactions could be completed by the end of this year.

Bankers familiar with the deal said Matahari, which has 49 outlets mostly in the western part of Indonesia, had planned to sell its hypermarket business but decided against it.

Matahari has said it wants investors to help it expand the hyperrmarket business to the eastern part of the archipelago, which is currently underserved.

This year Matahari expects to invest $150 million to add 15 outlets. It hopes to achieve $1 billion of sales in 2011 before rising to $3 billion over the subsequent three to four years.Source: Dow Jones