JAKARTA - Following the announcement of PT Mitra Adiperkasa Tbk (MAPI)’s creation of PT MAP Boga Adiperkasa (MBA), the new unit housing the company’s Starbucks, Dominos, Krispy Kreme, Cold Stone and Godiva business lines, management expresses intentions to shoot an IPO for the subsidiary in the years to come confident F&B business will thrive.
“I think we are just at the beginning of the journey of how we can grow these brands over the next five to ten years,” the newly appointed director of MBA, Anthony Cottan told attendees of the company’s public expose.
MAPI known as one of the most dominant forces in Indonesia’s retailing industry, will now take steps to focus on developing its F&B business.
In a deal with US investment firm General Atlantic (GA), MAPI will issue Rp1.08 trillion in bonds subscribed by GA. At the same time, MAPI will consolidate four of its F&B units under MBA. According to the agreement, MBA will go public in roughly five years. And when that time comes, MAPI and MBA will issue zero-coupon bonds that will be absorbed by GA whom will have to option to convert that to 29.9% of MBA shares.
According to Cottan, MBA F&B stores’ potential to grow is strengthening, especially as more Indonesians rise as middle income consumers. To put things into perspective he mentioned, “Starbucks (in Indonesia) with 240 stores is just at the beginning of its journey. Look China, they have over 1,500 and Japan over 1,000.”
Certainly Starbucks, whose locations dominate the lobbies of Jakartan office buildings and malls will see the largest funding expansion, “MAP is in 66 cities and so far Starbucks is only in 19,” he added. Managment aims to open 50 to 60 Starbucks stores annually. (CH)