Carlyle Out of the Running for Matahari Hypermart Biz

Four companies, including South Korea’s Lotte Shopping, are in the running for a majority stake in PT Matahari Putra Prima, the hypermart business owned by Indonesia’s Lippo Group, Reuters reported. Wal-Mart Stores, Casino Guichard-Perrachon and Lotte have advanced to the next round of bidding for the $1 billion business, Reuters said. Buyout shop The Carlyle Group, which was reportedly in the running, is not participating in the latest bidding round.

(Reuters) – PT Matahari Putra Prima , an Indonesian retailer, said four firms, including South Korea’s Lotte Shopping Co Ltd , are interested in investing in its hypermart business.

Matahari, a retailer controlled by one of Indonesia’s biggest conglomerates Lippo Group, said in an e-mailed statement that the four companies are interested in investing in the company as the majority shareholder and becoming a partner to expand the hypermart business.

“Management is happy … for the interest from several global retailers to invest and become a partner,” said Daniel Kojongian, a director at Matahari in an email statement.

Reuters reported earlier that U.S retailer Wal-Mart Stores Inc , Casino Guichard-Perrachon SA and Lotte have advanced to the next round of bidding for Indonesian retailer Matahari Putra Prima PT’s $1 billion sale of its hypermarket business. [ID:nTOE6AG02R]

The auction comes on the heels of Carrefour SA’s sale of its outlets in Thailand, which brought the French retailer a higher-than-expected $1.2 billion including debt. [ID:nLDE6AE025]

Matahari’s sale had drawn interest from private equity group Carlyle Group [CYL.UL], but sources said the buyout group did not make it to the second round. South Korea’s Shinsegae Co Ltd had also expressed interest, but it was not clear whether it was still in the running.

International retailers are jockeying for position in emerging markets as they look for sources of growth outside maturing U.S. and western European markets.

Lippo Group is selling Hypermart, Indonesia’s second-biggest hypermarket chain after PT Carrefour Indonesia, to focus on its core healthcare and property assets.

The sale is seen as a good opportunity to raise exposure in Indonesia’s retail sector, as a healthy economy, forecast to grow 6.0-6.2 percent this year, and a booming stock market lift consumption in Southeast Asia’s biggest economy.

It also comes just a few months after Matahari agreed to sell a 90.76 percent stake in retail unit Matahari Department Store to a joint venture with private equity group CVC Partners [CVC.UL] for $770 million. [ID:nSGE60O0J0] (Reporting by Janeman Latul; Editing by Jon Loades-Carter)