Retail operator PT Modern Sevel Indonesia (MSI) plans to sell its 7-Eleven convenience stores for Rp 1 trillion (US$75.24 million) to PT Charoen Pokphand Restu Indonesia (CPRI), a business entity of PT Charoen Pokphand Indonesia (CPI).
According to information from the Indonesian Stocks Exchange (IDX) published on April 21, the transaction agreement was made on April 19.
Under the deal, CPRI agrees to take over the business activities of MSI – mini-restaurants (resto) and convenience stores – as well as assets that use the franchise system.
The transaction, which is scheduled for June 30, is worth Rp 1 trillion, pending approval from various parties including the Trade Ministry and Financial Service Authority (OJK), shareholders, board of commissioners and 7-Eleven Inc., the owner of the brand, CPI president director Tjiu Thomas Effendy wrote in his letter to IDX’s registration director.
“MSI and CPRI have settled various issues related to the planned transaction,” said Tjiu.
The 7-Eleven chain of convenience stores and mini restaurants are popular among young people as most of the outlets remain open for 24 hours. However, sales have been on the decline as most customer come to enjoy the store’s free Internet and chat with their friends.
Other local retailers like Alfa Mart and Indomart have also opened mini resto in their outlets in recent months.