Singapore’s OUE to acquire 17.2% stake in Lippo’s tech investment vehicle Multipolar

OUE Downtown

Singapore-based property developer and investor OUE’s wholly-owned subsidiary is acquiring about a 17.2% stake in Lippo Group’s tech investment vehicle PT Multipolar Tbk for Rp1 trillion ($70 million) in a bid to tap into the country’s rapidly growing digital economy.

Lippo Karawaci CEO John Riady had, during a fireside chat at the Asia PE-VC Summit 2021, mentioned the group’s intention to put Multipolar at the forefront of the company’s technology and investing for the future.

Besides tech companies, Multipolar also seeks to partner Lippo’s retail businesses while forging collaborations with GoTo—the country’s biggest tech group—which recently invested in Lippo’s retail unit Matahari Putra Prima.

In a filing to Singapore bourse on Monday, OUE said it would acquire about 2.5 billion shares of Multipolar at Rp400 apiece. The purchase price was at a premium of 11.1% compared to Multipolar’s closing price on Dec. 17.

OUE is acquiring the shares from PT Inti Anugerah Pratama (IAP), an investment holding company held by Stephen Riady and James Tjahaja Riady. IAP holds around 8.97 billion of Multipolar shares, representing 55.1% of the company. The transaction has yet to show on Indonesia’s Stock Exchange filings.

Stephen Riady has an effective interest in 40% of the outstanding shares of IAP. He is also OUE executive chairman, group chief executive officer and controlling shareholder of OUE.

“The transaction will give OUE the opportunity to participate in Indonesia’s rapidly growing digital economy through MPC (Multipolar), whose portfolio businesses sit at the intersection of Indonesia’s technology and consumer sectors,” OUE corporate secretary Kelvin Chua said in the filing.

Multipolar, along with GoTo Group, will also be participating in a capital raise by MPPA to provide growth capital to execute the latter’s omnichannel retail strategy, and strengthen its balance sheet, he added.

Multipolar managed to turn the corner by posting Rp88 billion in profits in the third quarter of 2021 against a loss of Rp675 billion in the corresponding period last year. It registered a revenue of Rp7.4 trillion in Q3 this year against Rp7.6 trillion for the same period in 2020.

Shares of MPC closed at Rp380 apiece, up 5.56% on Monday. Meanwhile, OUE shares were up 0.76% to S$1.32 apiece.

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.

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.