PROPERTY developer OUE’s LJ3 wholly-owned subsidiary has entered into a sale and purchase agreement to acquire a 17.2 per cent stake in Multipolar (MPC), an Indonesian technology investment company, for 1 trillion rupiah (S$95.6 million).
This means that OUE would acquire about 2.5 billion shares of MPC at a purchase price of 400 rupiah per share, it said in a bourse filing on Monday (Dec 20).
Shares of MPC closed 12 rupiah or 3.2 per cent lower at 360 rupiah on the Indonesian Stock Exchange on Friday (Dec 17).
The purchase price represents a premium of 11.1 per cent to the closing price of the stock as at Dec 17, and is at a marginal premium of 1.4 per cent to the volume weighted average price of 394.6 rupiah of the share for the 3 month period up to and including Dec 17.
Completion of the transaction is not subject to any corporate, regulatory or third party approval or any other condition, and is expected to occur within 1 business day from the date of the sale and purchase agreement, said OUE.
OUE said it expects to fund the aggregate consideration for the transaction from its available cash resources.
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It added that the transaction is not expected to have any material effect on its consolidated net tangible assets per share and its consolidated earnings per share as of the last financial year ended Dec 31, 2020, assuming the transaction was completed on Jan 1.
MPC is a technology investment company with a portfolio covering retail and e-commerce, consumer services, financial services, technology, multimedia and telecommunications sectors.
Since 2015, MPC has invested in more than 50 companies including OVO, one of Indonesia’s largest digital payments companies; Sociolla, an Indonesian beauty and personal care e-commerce platform; and Ruangguru, Indonesia’s largest technology-enabled education provider.
It posted a Q3 net profit after tax of 88 billion rupiah, as well as 7.4 trillion rupiah in revenue.
The mainboard-listed company will be acquiring the shares from Inti Anugerah Pratama (IAP), an investment holding company held by Stephen Riady and James Tjahaja Riady.
Stephen Riady is the executive chairman, group chief executive officer and controlling shareholder of OUE. He has an effective interest in 40 per cent of the outstanding shares of IAP.
Meanwhile, James Tjahaja Riady, who is a controlling shareholder of OUE, has an effective interest in 60 per cent of the outstanding shares of IAP.
As of Dec 17, IAP holds approximately 8.1 billion MPC shares, representing a 55.1 per cent stake in the company. Other notable shareholders of MPC include Indonesia’s largest technology company GoTo Group.
OUE said in the bourse filing that the acquisition will further expand its consumer division in the growth market of Indonesia.
The transaction will also give OUE the opportunity to participate in Indonesia’s rapidly growing digital economy through MPC, whose portfolio businesses sit at the intersection of Indonesia’s technology and consumer sectors, it said.
Shares of OUE last closed S$0.02 or 1.5 per cent lower at S$1.31 on Dec 17.
