CRC buys Lippo Karawaci stake

The Jakarta Post, Jakarta

China Resources Holdings (CRC Group) has reported to the Capital Market Supervisory Agency (Bapepam) its purchase of a 15.44 percent stake in property developer PT Lippo Karawaci (LK) for Rp 680 billion (about US$73 million).

CRC Group, a business conglomerate owned by the Chinese government, purchased the stake through its subsidiary Greatmind Investments Limited, a media statement said on Thursday.

Lippo Karawaci, already a leading publicly listed property development company with a market capitalization of over Rp 4.4 trillion, expects a more satisfactory performance and growth after the sale.

"The investment represents a major vote of confidence for us. We envisage working hard to deliver consistent growth and satisfactory performance.

"We look forward to the CRC Group's active participation and contribution to our board," LK president director Viven G. Sitiabudi said.

The company also hoped that the inclusion of CRC Group would open up business opportunities in China, the statement added.

Focusing its business on residential homes, commercial malls and health care groups, LK targets an increase in profit this year to Rp 355 billion from about Rp 290 billion the previous year.

The other LK shareholders are Lippo Group (27.02 percent), the RZB Group (7.76 percent) and public investors (49.78 percent).

CRC Group's business includes food products, retailing, infrastructure, property and trading with substantial investments and operations in Hong Kong, mainland China and the Asia region.

"Whilst our main focus is in the Greater China region, the investment in LK reflects a long-term strategic alliance with the Indonesian and Southeast Asian markets for the CRC Group," CRC group managing director and CEO Charley Song said of the purchase.