Jakarta. GA Robusta F&B Company, a Singaporean affiliate of United States-based equity firm General Atlantic, exercised a bond-to-equity conversion deal to acquire a 19.88 percent stake in MAP Boga Adiperkasa, the holding arm of Jakarta-listed omni-channel retailer Mitra Adiperkasa.
In a brief prospectus published in Investor Daily newspaper on Thursday (15/06), MAP Boga said GA Robusta has issued confirmation that it will convert a zero-coupon convertible bond of Rp 725 billion ($54.5 million), issued by MAP in June 2016, into about 431.6 million shares in MAP Boga.
MAP controlled 99.99 percent of MAP Boga prior to the transaction.
According to the June 2016 bond subscription agreement, GA Robusta agreed to subscribe to a total of Rp 1.08 trillion in an unsecured bond, of which Rp 725 billion can be redeemed or converted into shares in MAP Boga upon the occurrence of certain events, including an initial public offering by MAP Boga.
In the same prospectus, MAP Boga, whose subsidiaries hold franchise licenses from global food and beverage brands such as Starbucks, Pizza Express, Krispy Kreme, Cold Stone Creamery and Godiva, announced that it was selling 22.17 million new shares, equivalent to about 1.02 percent of its enlarged capital, at Rp 1,680 apiece to investors.
The Indonesian company offered its shares to investors on June 15-16, before listing it on the Indonesia Stock Exchange (IDX) on June 21.
Local brokerage firm Indo Premier Sekuritas was appointed as underwriter for the share sale.
Proceeds from both the bond issuance and the IPO will be used to fund MAP Boga's business expansion, including the opening new food and beverage outlets.
In June last year, MAP consolidated its food and beverage business – which boasts more than 300 stores in 24 cities – under MAP Boga.
With the General Atlantic investment in MAP Boga, the company is set to add its food and beverage stores every year, especially Starbucks outlets.
Established in 1980, General Atlantic has been investing heavily in a wide range of companies and sectors, including news and entertainment outlet Buzzfeed, online-based hospitality service Airbnb and popular social media app Snapchat.
Besides the United States, the firm also has investments in Asia, including Beijing, Hong Kong, Mumbai and Singapore.
MAP operates 2,083 retail stores and holds 150 diversified franchises, including British retailer Marks & Spencer, Japanese department store Seibu, Spain-based clothing retailer Zara and Reebok, a footwear subsidiary of sportswear manufacturing giant Adidas.