Hari buys 10% of Multipolar's shares

JAKARTA (JP): The president of publicly-listed Matahari Putra Prima, Hari Darmawan, through his investment company PT Haritama Bakti Persada, has bought 10 percent of Multipolar for Rp 56 billion (US$23.52 million).

Multipolar said yesterday it would buy the shares in two stages.

The first 5 percent or 13,713,500 shares were bought Wednesday for Rp 27.8 billion or Rp 2,025 a share.

"The first purchase was made through cross transactions on the Jakarta Stock Exchange," Multipolar said.

The next 5 percent is expected to be bought within two weeks, once the shares are available from the share registrar after the company's stock split is complete.

Hari previously said he wanted to buy up to 40 percent of Multipolar.

Multipolar is part of Lippo Group.

Hari said he had "indicated (his) intention to become a shareholder in Multipolar since December last year."

Lippo Group's managing director, Roy E Tirtadji, said Hari's purchase would increase Multipolar's value.

"The sale represents Lippo's confidence in Hari and the long term strategic alliance between Lippo and Hari which should enhance Multipolar's position in Indonesia's leading retail group," he said.

Matahari is Indonesia's biggest retail chain.

Multipolar, which is also involved in information technology, has already bought 51 percent of Matahari from Hari Darmawan's PT Mataharijaya Putraperkasa.

The two companies' synergy in merchandising, purchasing, marketing, advertising, warehousing, technology and corporate image are expected to increase revenue.

Matahari shares rose Rp 75 to Rp 3,400 yesterday while Multipolar shares were steady Rp 1,400. (09)