Sumarecon to sell 5% to buy land

Sumarecon to sell 5% to buy land

JAKARTA: PT Sumarecon Agung, which builds shopping centers and apartments in Indonesia, plans to raise Rp 72.6 billion (US$7.2 million) selling a 5 percent stake to fund the purchase of 20 hectares of land in the capital Jakarta.

Sumarecon plans to sell 93.7 million new shares at Rp 775 each to a company called Valence Asset Ltd., based in the British Virgin Islands, the company said in a prospectus published in the Investor Daily Indonesia newspaper on Thursday. The prospectus didn't provide details about the buyer.

The Jakarta-based company will ask shareholders for approval in a meeting scheduled for Oct. 28, it said in the prospectus.

Sumarecon, Indonesia's fifth-biggest property company by sales, said on Sept. 29 net income fell 26 percent in the first six months to Rp 62.6 billion, while sales grew 19 percent to Rp 315.4 billion. --Bloomberg