Indonesia’s Lippo appoints banks to raise $200m for e-commerce foray; plans sale of $500m holdings in Link Net Holding

Brand logo from the Matahari Mall website

Indonesian conglomerate Lippo Group Monday said it has appointed Credit Suisse and Bank of America Merrill Lynch to raise funds to the tune of $200 million for its e-commerce foray.

Lippo, controlled by the Riady family, has also chosen Rothschild as its financial adviser for the transaction, Reuters said in a report, while also quoting the company’s statement that the ‘funding would be used to “dominate e-commerce in Indonesia.”

Lippo had earlier announced that it was setting aside $500 million for its e-commerce foray, and that the online department store would be branded MatahariMall.

The additional funding that it plans to raise, will be over this amount, indicating that the conglomerate is committing a minimum of $700 million to its e-commerce push. MatahariMall website says: “We are building the largest e-commerce in Indonesia. Coming soon, September 2015”.

“We welcome positive interest from investors. In recent months, MatahariMall has made a lot of progress and now is the right time to explore this cooperation. We are pleased to be working with Credit Suisse and Bank of America to find partners who have the same vision as we do,” the company said in a statement.

Lippo may exit Link Net Holding in $500 deal

These developments come even as the Group is looking to sell its 34% stake in Indonesian internet provider PT Link Net Tbk.

Lippo is the largest shareholder in PT Link Net Tbk, and its holdings are estimated to be worth around $500 million.

International business wire Bloomberg, in a recent report said that Lippo ‘had sounded out interest in the stake from potential acquirers including Indonesia’s largest media company MNC Group’, and the report also added that ‘James Riady, Lippo’s chief executive officer, was pursuing a sale after a nearly fourfold increase in Link Net shares in order to invest in Lippo’s other businesses like property and e-commerce’.

The Bloomberg report, quoting unnamed executives aware of the development, further said that ‘CVC Capital Partners Ltd., which owns 33.5 percent of Link Net, may also sell its stake if a buyer offered an attractive price’.

CVC had invested about $180 million in the internet service provider in 2011, and the private equity firm had got a partial exit when it and other investors sold 30% in Link for about $450 million in October last year.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.