Hutchison Whampoa looks to buy 5% stake in Multipolar

JAKARTA (JP): Hong Kong-based conglomerate Hutchison Whampoa Ltd. intends to acquire a 5 percent stake in technology company PT Multipolar Corp. of Lippo Group through a direct placement, the president of the latter company said.

Jeffrey K. Wonsono said on Tuesday that Hutchison Whampoa was one of three investors from Asia and Europe who were in serious talks with the broadband telecommunication links provider.

"Yes, it (Hutchison Whampoa) is one of the three serious investors," he said after Multipolar's extraordinary shareholders' meeting to approve the direct placement plan.

Jeffrey said it would take between two months and three months to complete the direct placement.

The Hong Kong company intended to buy some 89 million new shares in the direct placement deal, which would result in increase in the company's total issued shares to about 1.8 billion shares, he said.

Multipolar's current shareholding composition is PT Lippo Asia with 27 percent ownership, PT Haritama Bakti Persda (10 percent), and the public (60 percent).

Of the 60 percent of public ownership, 16.2 percent is held by Hong Kong-based Lotus Asset Management, Multipolar said.

The company said Lotus gradually accumulated Multipolar shares from buying through the market.

Multipolar earlier said it planned to invest Rp 130 billion in fiber-optic lines in order to offer high-speed Internet services.

The company said the lines would be connected to high-rise buildings in Jakarta's "golden triangle" business district. The company will then be able to provide high-speed Internet access to offices in the buildings. (udi)