Matahari Putra Prima, an Indonesian hypermarket operator, has affirmed its commitment to divest its non-core businesses as it seek to focus on growing its Hypermart retail chain, its chief said on Friday.
MPP owns TimeZone, a play-zone operator for children, Times Bookstore, property units and investment and financial service-provider arms.
Despite these businesses making good earnings, the bulk of MPP’s revenue comes from Hypermart, which as of last year operated 12 stores in Indonesia.
“The divestment of subsidiaries outside the core businesses will be used to sharpen the focus of the company in expanding Hypermart,” said Benjamin Mailool, the president director of MPP.
Danny Kojongian, director of corporate communications at MPP, said in April that the company was planning to open at least 17 new Hypermart stores this year.
He also said at that time that Hypermart accounted for 90 percent of MPP’s gross revenue of Rp 9.3 trillion ($986 million). MPP is owned by the Lippo Group, with which the Jakarta Globe is affiliated.
Benjamin said on Friday that MPP’s non-core businesses were estimated to be worth around Rp 3 trillion to Rp 4 trillion.
“But how much we can raise [from the divestment] will depend on the real market valuation,” he said.