Lippo and Matahari to join forces

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)