Matahari raises Rp 902 billion from sales of rights shares

JAKARTA (JP): The country's largest retailer, PT Matahari Putra Prima, has raised about Rp 902 billion (US$180.4 million) from its sales of its rights shares.

The company said in a statement yesterday that the fresh funds from the limited public offering increased its equity to Rp 1.5 trillion.

Matahari, which is listed on the Jakarta and Surabaya stock exchanges, is controlled by retail magnate Hari Darmawan and Lippo Group's retail division Multipolar Corp.

"Matahari and Lippo are fully committed to maintaining Matahari's dominant position in the retailing industry in Indonesia through increased efficiency and productivity," the statement said.

Matahari said that it had closed down several unprofitable stores and tightened costs as part of its restructuring program to boost operational efficiency.

The company said it expected to post a net profit of Rp 52 billion in 1997 and Rp 150 billion in 1998.

Matahari, which is the majority shareholder of Multipolar, reported recently that it had bought a 10.01 percent stake, or 23.52 million shares, of another local retail company, PT Hero Supermarket, as part of its expansion in the retail industry.

Executives from Matahari previously said the purchase of Hero's shares was aimed at creating a new synergy in Matahari's retail operation and distribution.

Matahari, which operates 81 retail outlets throughout the country, expects sales of Rp 2.2 trillion this year. (aly)