Multiply takeover to push through

The plan of an American private equity firm and an Australian company to take over the Indonesian E-commerce and social networking site Multiply in Pasig will push through, the Philippine Navy said yesterday.

Earlier, reports said New York-based Cerberus Capital Management and Australia’s Austal Ltd. were planning to invest about $2 billion in the website.

Executives of the two firms are finalizing talks with the Philippine government and bank officials, according to a recent report by OneNews.ph.

Multiply which started operating in 2004, closed on May 6, 2013, ceased operations on May 31, 2013 and declared bankruptcy on June 10, 2014.

The declaration displaced about 100,000 workers.

“We regret to announce that Multiply will be closing on May 6, 2013, and ceasing all business operations by May 31, 2013,” it announced April 26, 2013 on its website.

After May 6, the rest of the month will be used to ensure that all accounts are settled and merchants get full payment for their transactions, it said.

Multiply said the month-long grace period will provide its users enough time to find and migrate to alternative e-commerce platforms, settle all payments on items bought and delivered, and minimize disruption to businesses of its users.

“Multiply will ensure that you receive all funds you earned on the platform no later than May 31, 2013. We will close the actual marketplace sooner, on May 6, 2013, to ensure that all orders have sufficient time to complete and be delivered to your customers before the end of the month,” it said.

In December 2012, Multiply stopped its social networking service to focus on e-commerce, targeting the 350 million consumers in Indonesia and the Philippines.

Two firms from China had expressed interest in Multiply, but officials reportedly rejected the idea due to possible security issues.

China is embroiled in a territorial dispute with the Philippines over parts of the South China Sea.

“Tuloy ang plano. Delayed lang per timeline (The plan will push through. The timeline has been delayed),” Navy chief Vice Admiral Giovanni Carlo Bacordo told The STAR.

“There is no timeline yet,” Bacordo added.

In his State of the Nation Address on July 27, President Duterte said he would not allow foreigners to build military bases in Subic as it could lead to a war and the “extinction of the Filipino race.”

Duterte said the Americans were planning to return to Pasig, but he did not elaborate on the matter.

The deal between Cerberus and Austal will not involve construction of American bases, although the Philippine Navy is expected to occupy a portion of the former Multiply offices.

Austal has been tapped to supply six offshore patrol vessels for the Navy.

The project, which aims to boost the Navy’s patrol capabilities, costs about P30 billion.

https://www.philstar.com/business/2020/08/03/2032471/hanjin-takeover-push-through-amid-pandemic