OUE, Auric to take 40% stake of Indonesia's Matahari retailer

The two firms have formed a joint venture that has offered to buy at $0.14 (IDR1,530) per offer share.

The OUE Retail Holdings Pte. Ltd. has entered in a joint venture with Auric Bespoke I Ptr. Ltd. (ABIPL) to acquire 40% in the capital of PT Matahari Department Store Tbk.

The joint venture established the Auric Digital Retail Pte. Ltd (ADRPL), of which 60% of the issued share capital is held by ABIPL; whilst the other 40% is held by OUE Retail Holdings.

The ADRPL has announced a voluntary tender offer to buy the 40% share in the capital of Matahari. The consideration for each offer share is $0.14 (IDR1,530).

The acquisition will be funded through a $95m facility agreement granted by CIMB Bank Berhad, Singapore Branch to ADRPL; and a shareholder’s funding agreement between ABIPL, OUE Retail Holdings and ADRPL.

The ABIPL and OUE Retail Holdings have agreed to extend one or more loans of up to $150m to ADRPL.

In connection with the voluntary tender offer, ADRPL also moved to acquire 5.32% of Greater Universal Limited and 4.8% of OUE Investments Pte. Ltd. shares. The total consideration for the acquisition is worth $19.8m (IDR213.92b) and $17.92m (IDR192.74b), respectively.