JAKARTA (Indonesia Today) – shares of retailer PT Matahari Putra Prima Tbk (MMPA) gained 1.39% to Rp1,460 per shares this morning as investors are expexting the better prospect of the company after divesting its non core assets.
??
After trading flat during 9 months, MPPA started its rally since July 2012 and reached its pick at Rp1,490 in September 17, 2012.??
MPPA’s shareholders had on Wednesday (Sept 19) approved the company’s proposal to divest its non core assets, including Timezone, Times Bookstores.
Danny Kongjongian, director of Matahari, earlier said the company expects Rp3.2 trillion from the divestment. The divestment is a recommendation from third party review conducted by Merrill Lynch, Singapore.
After the divestment, MPPA will focus on the development of hypermarket segment with estimated growth of 20-30%. Matahari sets aside Rp1 trillion of capital expenditures this year, of which Rp500 billion has been spent in the first half of 2012.
Other than hypermarket, MPPA also plans to invest in mini market under Big Mart brand. The company expects to generate sales revenue of Rp11.5 trillion this year.
Shareholders had also approved MPPA’s proposal to split its stock with ratio of one for 10, from current Rp500 per share to Rp50.
The stock split is part of Matahari’s business restructuring. It also plans to transfer some business units to PT Multipolar Tbk as the controlling shareholder. After assets transfer, Matahari’s cash and cash equivalent will increase to Rp6.1 trillion.
Matahari said this liquidity excess will be used to pay debt and interim dividend amounting Rp3.4 trillion to shareholders. (hans@theindonesiatoday.com)