Singapore-based real estate developer and investor, the wholly owned subsidiary of OUE, acquires an approximate 17.2% stake in Lippo group’s technology investment vehicle PT Multipolar Tbk for Rs1 trillion (Rs 70m) dollars) in an effort to tap the country’s rapidly growing digital economy.
Lippo Karawaci CEO John Riady, in a fireside conversation at the PE-VC 2021 Asia Summit, spoke of the group’s intention to bring Multipolar to the forefront of company technology and ‘invest for the future.
Along with tech companies, Multipolar is also looking to partner with Lippo’s retail businesses while forging collaborations with GoTo, the country’s largest tech group, which recently invested in Lippo’s retail unit. , Matahari Putra Prima.
In a filing filed with the Singapore Stock Exchange on Monday, OUE said it would acquire around 2.5 billion shares of Multipolar at Rp 400 each. The purchase price was 11.1% premium over Multipolar’s closing price on December 17.
OUE acquires the shares of PT Inti Anugerah Pratama (IAP), an investment holding company owned by Stephen Riady and James Tjahaja Riady. IAP owns approximately 8.97 billion Multipolar shares, representing 55.1% of the company. The transaction has not yet been published in the Indonesian Stock Exchange archives.
Stephen Riady owns an effective interest in 40% of the outstanding shares of IAP. He is also executive chairman of OUE, general manager of the group and controlling shareholder of OUE.
“The transaction will give OUE the opportunity to participate in Indonesia’s rapidly growing digital economy through MPC (multipolar), whose portfolio activities lie at the intersection of technology and Indonesian consumption, âOUE general secretary Kelvin Chua said in the dossier.
Multipolar, along with GoTo Group, will also participate in a capital raise by MPPA to provide growth capital to execute the latter’s omnichannel retail strategy and strengthen its balance sheet, he added.
Multipolar managed to break the bank by posting 88 billion rupees in profit in the third quarter of 2021 compared to a loss of 675 billion rupees in the corresponding period last year. It recorded sales of 7.4 trillion rupees in the third quarter of this year, compared to 7.6 trillion rupees for the same period in 2020.
Shares of MPC closed at Rp 380 each, up 5.56% on Monday. Meanwhile, OUE shares rose 0.76% to S $ 1.32 each.