GoTo Group, an entity formed after the merger of Indonesian unicorns Gojek and Tokopedia, will boost its stake in local retailer Matahari Putra Prima (MPPA), according to a stock exchange filing on Tuesday.
MPPA operates supermarket brands Hypermart, which has a network of over 200 stores across 72 cities in Indonesia, and Foodmart.
Local conglomerate Lippo Group’s investment arm Multipolar will also top up its investment in MPPA, the retailer said in a filing with the Indonesia Stock Exchange (IDX). Multipolar owned a 38.33% stake in MPPA as of August 31, per IDX data.
GoTo and Multipolar will participate in a rights issue that MPPA aims to conclude in the fourth quarter this year. The retailer did not disclose how much it is seeking to raise.
MPPA said it plans to use the capital to increase its market share, strengthen its balance sheet and boost its omnichannel retail strategy. It holds a 25% market share in the supermarket and hypermarket category, per NielsenIQ research data.
MPPA’s stock dipped nearly 6.6% to 925 rupiah at the end of trading hours on Tuesday.
DealStreetAsia had on Monday reported that GoTo Group has increased its stakes in Multipolar and MPPA through stock market transactions.
