SINGAPORE (Dec 13): Metro Holdings is selling its entire 50% stake in PT Metropolitan Retailmart (PT MRM) to its JV partner PT Trans Corpora for $25 million.
PT MRM operates 11 Metro stores in Jakarta, Bandung, Surabaya, Makassar, Solo and Manado.
Following completion of the deal, PT Trans Corpora, which currently owns the remaining 50% stake in PTMRM through an affiliated associate, will own 100% of the departmental store.
Under the deal, Metro will grant PT Trans Corpora permission for PT MRM to use its “Metro” trademarks in return for a fee.
In its filing, Metro says the sale consideration was arrived at through negotiation on a willing-buyer, willing-seller basis after taking into account the market value of PTMRM assessed by an independent valuer.
Metro is expected to book a gain of some $9.3 million from the sale.
Metro says the divestment is in line with its long-term strategy and direction, and presents a good opportunity to realise and unlock its value in PTMRM.
The sale comes on the back of Metro’s recent closure of its Centrepoint store in Singapore upon the expiry of its lease.
“In the recent years, Metro has been rationalising its retail business in response to changing market condition and continues to focus on its core business of retail in Singapore, together with property investment and development,” says the group.
Metro says the sale is not expected to have any significant impact on the consolidated net tangible asset per share and the consolidated earnings per share of the group for the year ended March 31, 2020.
Shares in Metro closed flat at 93.5 cents on Thursday prior to the announcement.