IDX-listed PT Pusako Tarinka Tbk is acquiring
the companies which own and operate Tune Hotels across Indonesia,
as it undertakes a major transformation of its current business
model and hotel development plans.
At a recent general meeting of
shareholders, PT Pusako Tarinka Tbk voted to acquire PT Red Planet
Indonesia and its affiliated companies, which currently own and
operate seven hotels across the country under a franchise
agreement with Tune Hotels.
The company is
aiming to develop at least 20 more hotels in key Jakarta and major
Acquisition of the Red Planet
Indonesia business repositions PT Pusako Tarinka Tbk as a major
force in Indonesia's rapidly emerging budget hotel sector.
further illustration as to the importance and size of the
acquisition, PT Pusako Tarinka Tbk will be renamed PT Red Planet
Indonesia Tbk and will continue to trade under the IDX ticker of
Whilst making this announcement during the
presentation of an enhanced business plan, President Commissioner
Hapsoro urged shareholders to approve a rights issue to finance
the acquisition of the Tune Hotels portfolio in Indonesia. The
rights issue will raise IDR635.5 billion.
Commissioner Hapsoro added that after a year of conducting due
diligence into the acquisition, the decision to proceed very
clearly became "the right business move to make" for the company
and its shareholders.
"We have been looking to broaden the
diversity of our hotel product and our geographical coverage and
the very successful Tune Hotels brand is the perfect vehicle for
this strategic expansion in Indonesia," Hapsoro said.
PT Pusako Tarinka Tbk President Director, Suwito added, "The
budget, or value-for-money, hotel sector in Indonesia is the fastest growing, the most resilient, and the most profitable
sector of the hospitality market. Tune Hotels is without a doubt the most iconic value-for-money brand in the region. The
acquisition of PT Red Planet Indonesia contributes a strong
management team with a clear strategic vision and a robust
governance framework already in place, and I am very much looking
forward to working with them as we take the company in a new
direction and grow the portfolio throughout Indonesia."
The Tune Hotels brand now operates 41 hotels in nine
countries (Indonesia, Thailand, Philippines, Malaysia, Japan,
India, Australia, England, and Scotland) and has won many awards
for providing quality accommodation and services.
Tune Hotel Asoke on
Sukhumvit Road in Bangkok (Thailand) - HD