OUE Limited Acquires 17,2% Shares of Multipolar, Wants to Boost Digital Business in Indonesia
Also continuing the strategic partnership after GoTo acquired the Matahari Putra Prima retail network
Singapore-based property development company OUE Limited acquires 17,2% stake in PT Multipolar Tbk (MLPL) with a value of IDR 1 trillion (approximately $70 million). This corporate action was carried out to encourage its digital business in Indonesia.
This transaction is agreed through a sale-purchase agreement or sale and purchase agreement (SPA). In the process of filing on the Singapore stock exchange, OUE will acquire 2,5 billion Multipolar shares at a price of Rp400 per share. This price is considered a premium in the range of 11,1% compared to the closing price as of December 17, 2021.
"This transaction will provide an opportunity for OUE to participate in the rapidly growing digital economy in Indonesia, where its entire business portfolio is located in Indonesia. intersection from the technology sector and consumer," said OUE Corporate Secretary Kelvin Chua as quoted from Deal Street Asia.
To acquire Multipolar, OUE will buy shares of PT Inti Anugerah Pratama (IAP), an investment company owned by Stephen Riady and James Riady. IAP will hold 8,97 billion shares of Multipolar, representing 55,1% of the company's total shares.
For information, Stephen is a controlling shareholder in OUE Limited, which is the owner, property developer and manager real estate in the Asian region. Stephen Riady also holds a 40% stake in IAP, and holds positions as Executive Chairman and Group Chief Executive Officer.
Meanwhile, Multipolar is a subsidiary of the giant conglomerate Lippo Group. Previously, Lippo Karawaci CEO John Riady had expressed his interest in placing Multipolar at the forefront of boosting business in the technology sector and investment in the group.
Based on the financial statements for the third quarter of 2021, Multipolar managed to reap a profit of IDR 88 billion, from a huge loss of IDR 675 billion in the same period last year. However, the company recorded a decrease in revenue from Rp7,4 trillion from the previous Rp7,6 trillion.
The corporate actions above indicate Lippo Group's efforts to forge more aggressive technology and investment businesses next year. Plus, the continuation of Multipolar's strategic partnership after GoTo acquired modern retail network company PT Sun Putra Prima (IDX: MPPA) last October.
Recently, Multipolar also announced its new face under the name "MPC". Rebranding This is done at the same time to sharpen the company's strategy and focus in the digital economy sector. MPC Group CEO Adrian Suherman said that he would ramp up new investments in futuristic areas focusing on four main sectors, namely retail, technology, healthcare and digital banking in 2022.
Multipolar has made strategic investments in a number of startups through the Lippo Group's investment vehicle, Venturra Capital. Some of them are OVO, Sociolla, and Ruangguru. To date, MPC has invested in more than 50 technology companies in Indonesia.
Referring to the e-Conomy SEA 2021 report compiled by Google, Temasek, and Bain & Co, the value of Indonesia's digital economy is predicted to reach $70 billion in 2021.