Bapepam-LK monitors Matahari acquisition

Tuesday, 09/02/2010 00:00 WIB

Irvin Avriano A.

for Bisnis Indonesia

Bapepam-LK monitors Matahari acquisition

JAKARTA: Bapepam-LK declined the suspicion on the insider trading practice in the acquisition of PT Matahari Department Store Tbk by Meadow Asia Company Ltd worth IDR7.73 trillion.

Chief of Bapepam-LK Ahmad Fuad Rahmany considered the suspicion was baseless as it is hard to prove the insider trading action in the capital market.

"It is not only us complaining about the difficult insider trading evidence but also many capital market authorities even US and Australia also found it hard to cope with the problem. Rarely could one find the proof of the suspicion," he said yesterday.

He said the suspension of Matahari Putra Prima stocks was done three days after the announcement of the incident as it required early information prior to suspension.

"We want to collect information given that it could hamper our further action would it be done in a rush."

Chief of service sector company assessment bureau of Bapepam-LK Noor Rachman said the reasons for the suspicion was baseless noting that all parties in the transaction are possible to use any reasoning. It must not be based on the insider information.

"It might come from the investor that plans to buy at high price as it is interested in the company prospect. It is not prohibited."

Yesterday, in the hearing with Bapepam-LK, Arif Budimanta of the Legislatives' Commission XI of F-PDIP questioned the allegations.

The stock was previously owned by PT Matahari Putra Prima Tbk and Pacific Asia Holding Ltd. Meadow Asia is the company formed by Matahari Putra Prima jointly with CVC Capital Partners with Matahari possession of 2 percent.

The acquisition is done by Meadow Asia to the stocks of Matahari Departement Store owned by Matahari Putra Prima worth IDR7.16 trillion and the rest owned by Pacific Asia.

"We suspected why was it not suspended earlier and it had transaction with high price of IDR2,900-3,000 end of January as from the lower price of IDR500 at market before December," said Arif.

The stock price of Matahari Putra Prima even closed to the price level of IDR2,703 in January before official announcement of the corporate action February 2.

So, there are possibilities that some shareholders were harmed by the shareholders affiliated to the company.

Arif said the suspicion is likely caused by the insider trading so it potentially led the investors to suffer injury particularly those without any proper information.

Arif was not simply highlighting the suspected insider trading but also the allegation of self transaction done by Lippo Group as the stock holder of Matahari Putra Prima, Matahari Department Store, and PT Multipolar Tbk as one party with shares ownership of the companies.

He disappointed with the response addressed by Fuad as the authority should have monitored rigidly each transaction particularly with high worth and impact to the capital market.

Deputy chairman of Commission XI from F-PG Melchias Marcus Mekeng said it'd better for Bapepam-LK to check the origin of the company which plans to become the shareholder of Matahari Putra Prima.

"formerly, PT Carrefour Indonesia acquired PT Alfa Retailindo Tbk because they have clear business, retail sector. But in this case, it remains unclear who acquired Matahari. It is better to check to as to maintain the running corporate business."

Melchias called for there things form Bapepam-LK in the meeting conclusion, first it insured the monitoring of mutual fund and investment products must be tightened to prevent from scandalous PT Antaboga Deltasekuritas Indonesia with illegal products.

Second, it ensures the acquisition process at capital market runs on its course. Third, it calls for written agreement on the study of Bapepam dealing with the case of Matahari and Antaboga Sekuritas February 12. (Bisnis/iaa)