Lippo and Matahari to join forces

JAKARTA (JP): PT Multipolar Corporation, the publicly listed information technology and investment services firm controlled by the Lippo Group, announced yesterday its plan to own 50.1 percent of PT Matahari Putra Prima, the country's largest retail chain.

The two companies announced in a joint statement yesterday that they were joining forces in retailing to anticipate globalization.

"We have reached a deal whereby Multipolar is to acquire 202.95 million existing shares of Matahari. Multipolar has also made a tender offer for an additional 5.1 percent of Matahari to increase its total shareholding to 50.1 percent," the statement said.

Multipolar is to buy 202.95 million shares from PT Mataharijaya Putraperkasa, the personal holding company of Matahari's founder, Hari Darmawan.

"But contingent upon shareholders' approval, Darmawan will lead both Matahari and Multipolar as executive chairman," the statement added.

The companies said their synergy in merchandising, purchasing, marketing, advertising, warehousing, technology and corporate imagery would help increase their revenues.

The combined Matahari-Multipolar retail group would have a broad range of retail franchises catering to middle and top market segments.

Matahari has 84 stores in 30 cities with annual sales of almost Rp 2 trillion (US$850 million).

Their retail franchises include Matahari stores, Mega M supercenters, Galeria department stores, Super Ekonomi stores and Mulipolar's Wal-Mart supercenters, Fireworks Family Entertainment centers and JC Penney stores.

"As more foreign players will enter the retail market with more sophistication, technology and a higher level of service, Matahari will have to further institutionalize its management and strengthen its capital base," Darmawan said on the deal.

The statement said that, subject to shareholders' approval, Matahari's management would be led by Henry Damarjaya as advisory chairman, Hari Darmawan as executive chairman, Robert H. Hacker as executive deputy chairman, Hengky Tjitra as president and chief executive officer and Herman Darmawan as deputy president and chief operating officer.

Multipolar said it would call an extraordinary general meeting of shareholders on Jan. 30 to approve its deal with Matahari. (vin)