PT Charoen Pokphand Restu Indonesia entered into an agreement to acquire PT Modern Sevel Indonesia from PT Modern Internasional Tbk (JKSE:MDRN) for IDR 1 trillion on April 19, 2017. The consideration is subject to the result of the valuation and due diligence. Under the transaction, Charoen Pokphand Restu Indonesia will take over the business of Modern Sevel Indonesia in restaurant and convenience store, as well as related assets based on franchise system. The transaction will be financed through internal cash flow of Charoen Pokphand Restu Indonesia. The transaction is subject to corporate approval from Modern Sevel Indonesia and Modern Internasional, including approval from shareholders’ meeting and Board of Commissioners, approval from Governmental authority including approval from Ministry of Commerce on the clean break of Franchise Agreement and appointment of Charoen Pokphand Indonesia as the new franchisee as well as approval from Financial Services Authority, approval from the creditor and approval from 7-Eleven Inc. as the franchisor in regards to the termination of franchise agreement with Modern Sevel Indonesia and the appointment of Charoen Pokphand Indonesia as the new franchisee, and the settlement by Modern Sevel Indonesia and Charoen Pokphand Restu Indonesia of the related issues by considering the result of valuation and due diligence. The transaction is expected to be completed on or before June 30, 2017. KAP Tanubrata Sutanto Fahmi & Rekan acted as accountant to PT Modern Internasional Tbk, parent of PT Modern Sevel Indonesia. KJPP Jennywati, Kusnanto & Rekan and KJPP Toto Suharto & Rekan acted as independent appraisers to PT Modern Internasional Tbk.