Matahari acquisition needs new funding: 28 local brokers involved in funding mark up

Wednesday, 03/03/2010 00:00 WIB

Matahari acquisition needs new funding: 28 local brokers involved in funding mark up

Irvin Avriano A.

for Bisnis Indonesia

JAKARTA: The Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) warned CVC and Matahari to seek other funding to acquire Matahari Department Store (MDS).

Service Sector compnay finance assessment bureau chief of Bapepam-LK Noor Rachman said the acquisition transaction of MDS owned by Matahari Putra Prima by Meadow might be called off in case the bank loan is dropped off and the company fails to have other funding resources.

"If they don't have other acquisition funding it might be called off as more than half of the acquisition fund which is worth IDR2.8 trillion is from bank loan," he said yesterday.

The sales process of 90.76 percent of MDS by the holding firm of PT Matahari Putra Prima Tbk to CVC Capital Partners have loan provided by bank consortium of PT CIMB Niaga Tbk and Standard Chartered Bank Indonesia oleh MDS worth IDR3.25 trillion.

The loan insured 98 percent of MDS shares which will be owned by Meadow Indoensia with the rate equals to SBI plus 6 percent. the other collateral is account receivable of Matahari Putra Prima to PT Asri Agung Permai (MDS subsidiary firm) worth IDR1 trillion and to Asri Agung worth IDR2.8 trillion.

But, in the context of divestment of Matahari Putra Prima to Meadow, the payment pattern of IDR5.3 trillion cash plush IDR1 trillion debt without any collateral and 20 percent MAC shares (other Matahari subsidiary firm) plus warrants.

CVC and PT Matahari signed sell and purchase agreement January 23 of 2.65 billion shares of PT Matahari Department Store Tbk (MDS) or 90.76 percent as from the total capital placement with transaction worth IDR7.16 trillion or IDR2,705.33 per share.

Chief of Bapepam-LK Ahmad Fuad Rahmany yesterday met Bank Indonesia top officials to coordinate on the MDS divestment scheme which might affect bank.

However, Bank supervisory director I of Bank Indonesia Erwin Riyanto was not available for comment.

Bapepam LK indicated the stock trade transaction (of MDS) done by 28 brokers by December 2009 was executed by local brokers.

"I think almost all were of local brokers. They will be directly probed by Bapepam-LK. There is an indication of price mark up, but not insider trading," said Fuad declining to name the securities in this suspected stock trading here.

PT Reliance Securities Tbk Research Analyst Gina Novrina Nasution said in case of the absence of significant business prospect from an emitter, the soaring instant price was baseless.

She also said the swelling stock price is potentially leading the stock value as the collateral could be increased.

"If stock price jumps sharply of course it will affects the valuation for the stock which would be loan collateral," she added without relating to certain emitter stocks.

The irregularities here have even forced the member of House's Commission XI Melkias Markus Mekeng to give comment. He urged Bapepam to investigate the suspicious transaction in this case. (Bisnis/iaa/m04/aca/faa)