Matahari's rights issue

JAKARTA (JP): Matahari Putra Prima announced yesterday that it had received Rp 470 billion (about US$138 million) from Multipolar Corporation, its largest shareholder, as the payment for the portion of its rights shares.

Matahari, the country's publicly-listed department store chain, said that the payment was made "in cash on hand with no bank loans".

Hengky Tjitra, the president of Matahari, said he expected that other big investors would also choose to buy the company's new shares.

Matahari is currently offering a two-to-one rights issue to raise fresh funds to finance its expansion.

Hengky said that he expected to raise around Rp 902 billion from the rights issue. (hen)