Hari to buy 40 percent of Multipolar

Hari to buy 40 percent of Multipolar

JAKARTA (JP): Matahari Putra Prima's president, Hari Darmawan,
said yesterday he planned to buy up to 40 percent of Multipolar,
which earlier this year bought 45 percent of Matahari's shares
from his personal holding company.

Hari said he would initially buy about 20 percent of
Multipolar's shares which could later be increased to 40 percent.

"The maximum amount will be around 40 percent," he said.

Hari's statement pushed up Multipolar share price to Rp 3,250
in early trading but eased to close at Rp 3,200 from Rp 2,950 on
the previous day.

Matahari, Indonesia's largest retail chain and Multipolar, a
subsidiary of the widely diversified Lippo Group, are both listed
on the Jakarta Stock Exchange.

Multipolar, which is also involved in information technology
in addition to its retail operation, was also given the option of
increasing its stake in Matahari to 51 percent. Hari was
appointed chief commissioner of Multipolar as part of the deal.

The alliance combines the country's two largest retail chains,
which operate outlets in most major Indonesian cities.

Multipolar operates several department stores under licenses
from U.S. retail chains like Wal-Mart and JC Penny. Matahari
operates in most of the country's major cities with over 85
outlets.

Hari said the stake in Multipolar would be financed with
proceeds from the sale of his stake in Matahari to Multipolar
shareholders.

He refused to say when the deal would be realized.

"I hope we can make it this year, maybe," he said.

Matahari planned to open seven outlets this year in Bogor,
Depok, Cianjur, Sukabumi, Cilegon all in West Java, and
Pekalongan in Central Java and Surabaya in East Java at a cost of
between Rp 105 billion and Rp 140 billion, he said.

"One outlet would cost between Rp 15 billion and Rp 20
billion," he said.

Matahari would finance the expansion from its Rp 200 billion
rights issue three months ago, he said.

He said the remainder of the rights issue funds would be used
to expand the company's infrastructure like warehouses and
computers.

He said there had been an offer from Singapore to open a
Matahari outlet there but Matahari did not want to. "We do not
want to enter Singapore yet because this country still offers
huge potential for us," he said. (09)