JAKARTA (Reuters) – Matahari Putra Prime (MPPA.JK) said on Monday it was selling a 90.76 percent stake in retail unit Matahari Department Store to a joint venture with private equity group CVC Partners for 7.2 trillion rupiah ($773.4 million).
President Director Benyamin J Mailool said Matahari Putra will own a 20 percent indirect stake in the joint venture, which is looking to expand retail outlets as domestic consumption drives growth in Southeast Asia’s largest economy.
“We plan to open 150 retail stores in the next 10 to 15 years,” Mailool told reporters.
Indonesia’s growth has been attracting private equity firms, particularly in the resources sector.
The economy was given a vote of confidence on Monday by Fitch Ratings, which lifted the country’s ratings to one notch below investment grade.
Matahari Putra’s shares climbed 10.9 percent on Monday, outperforming a 0.5 percent drop in the broader Jakarta index .JKSE. (Reporting by Dicky Kristanto and Sonya Angraini; Writing by Neil Chatterjee)