Multipolars to buy Matahari shares

JAKARTA (JP): An extraordinary meeting of shareholders of PT Multipolar Corporation approved yesterday the company's plan to forge an alliance with PT Matahari Putra Prima.

Multipolar said the alliance was expected to raise its consolidated turnover from Rp 2 trillion (US$869.56 million) this year to Rp 15 trillion a year by 2007 and increase its profits by up to five folds.

Multipolar said it would finance the alliance by issuing rights shares.

The shareholders also approved Multipolar's new board of commissioners including president Hari Darmawan, vice president Roy E. Tirtadji, who is Lippo Group's managing director, and James T. Riady.

The company's executive includes president Winardi Setiaputra and directors Jeffrey K. Wonsono and Handoko A. Tanuadji.

Multipolar is a publicly listed firm involved in information technology and investment services. It is controlled by Lippo Group.

Last month it announced a plan to acquire 50.1 percent of Mataharijaya Putraperkasa, the personal holding company of Matahari's founder, Hari Darmawan.

Under the plan, Multipolar would offer to buy 202.95 million shares of Matahari and tender for an additional 5.1 percent of the firm.

Multipolar and Matahari, the country's largest retail chain, said last month they would join forces in retailing to anticipate globalization.

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

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. (pwn)