CRC buys Lippo Karawaci stake

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.