GoTo Acquires 6,74% Share of Hypermart Retail Network Owner

GoTo officially announced the acquisition of a 6,74% stake owned by modern retail chain company PT Matahari Putra Prima Tbk (IDX: MPPA) through PT Multipolar Tbk (IDX: MPLPL). Through this share divestment, Multipolar will pocket fresh funds of IDR 355 billion.

Based on information disclosure on the Indonesia Stock Exchange (IDX) on Thursday (7/10), Matahari Putra Prima Corporate Secretary Danny Kojongian stated that PT Multipolar Tbk (IDX: MPLPL) as the controlling shareholder of Matahari Putra Prima, has released its shares to PT Application Karya Anak. Bangsa which is equivalent to 507.142.900 shares with an exercise price of Rp700 per share. This transaction was agreed on Monday, October 4, 2021.

Matahari Putra Prima is a subsidiary of Lippo Group, which is one of the largest modern retail chains in Indonesia. Some of its outlets include Hypermart, Foodmart Supermarket, Primo Supermarket, to Boston Health and Beauty. Currently Hypermarket has 200 outlets spread across 72 cities in Indonesia.

In official statement, CEO of Matahari Putra Prima, Elliot Dickson, said that his party was strengthening capital to boost Hypermart's market share and support its investment in omnichannel. Meanwhile, Multipolar and GoTo will be involved in increasing Matahari Putra Prima's capital.

"Hypermart is taking advantage of this pandemic situation to spur e-groceries services, where there has been a fourfold increase over the past year. At this time we want to push Hypermart's position as a leader in the omnichannel retail market," said Dickson.

Synergize the capabilities of the GoTo ecosystem

NielsenIQ survey said Hypermart has 25% market share supermarket and hypermarket in Indonesia. Through these corporate actions, both parties have mutually strengthened their position in the omnichannel, both Hypermart and GoTo via GoMart.

GoTo can also take advantage of the capabilities of the related service ecosystem to strengthen its synergy with Hypermart, namely through a strong base on transportation services (GoRide & GoCar) and instant courier (GoSend).

In addition, Matahari Putra Prima's strategy is to focus on ordering fresh products and daily necessities based on omnichannel is an effort to continue the realization of its positive performance in 2020.

Referring to the 2020 Annual Report, Hypermart's online business made a significant contribution of 4%-5% to the total sales of the previous year which was only 0,1%. In 2021, his party targets a contribution growth of 8%-10%.

Since the pandemic, Matahari Putra Prima has started to make the transition by entering the O2O grocery service. At the beginning, the company introduced Hypermart Online and Chat & Shop services. In addition, Hypermart also collaborates with big O2O players, such as Shopee and Tokopedia. Hypermart also adds more payment options, starting from OVO, ShopeePay, QRIS, and mobile banking.

As of 2020, 103 Hypermart outlets have been actively connected with Hypermart Online, then 125 outlets for Chat & Shop, 97 virtual shops in Grab Mart, 45 virtual shops on Shopee, and 23 virtual shops on Tokopedia.

Similar corporate actions are also being completed by marketplace Blibli with Ranch Market retail outlet owner. Based on IDX's information disclosure some time ago, PT Global Digital Niaga, which oversees Blibli, signed a Binding Share Purchase Agreement (PPPS) to acquire the majority shares of PT Supra Boga Lestari as many as 797.888.628 shares or equivalent to 51% of the total issued and fully paid capital.

This strategy also gives a signal that Blibli is trying to strengthen its services Grocery his, namely BlibliMart. Based on the Blibli report in 2020, the company experienced a three-fold increase in daily staple transactions during the pandemic.