Jakarta. One of Indonesia's largest department store operators, Matahari Department Store, announced its plan to invest Rp 590 billion ($44 million) in Global Ecommerce Indonesia, the parent company of local e-commerce firm MatahariMall.com over the next 10 months, the company said in a statement on Tuesday (15/11).
The decision came after Japan's Mitsui & Co announced its plans to invest $100 million in Global Ecommerce Indonesia over the next 12 months, which could dilute Matahari Department Store's shares in the firm. Prior to Mitsui's investment, Matahari held 9.47 percent of GEI shares.
According to the statement, Matahari plans to increase its stake by injecting an estimated Rp 590 billion in stages. The closing of the deal is subject to several conditions and must comply with regulatory standards.
Matahari Department Store said it would maintain a stake of up to 20 percent in GEI and has no plans to participate in any further funding initiatives by GEI or MatahariMall.com.
"We are delighted to have the opportunity to increase our stake in GEI. This is consistent with Matahari's strategic vision to grow our footprint further in the coming years," Matahari Department Store chief executive, Richard Gibson, said.
Matahari Department Store now owns and operates 148 stores in 68 cities across Indonesia.
The Jakarta Globe, Matahari Department Store and MatahariMall.com are affiliated with Lippo Group.