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MARKET MOVING: Matahari Confirms Business Downsizing

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JAKARTA: PT Matahari Putra Prima Tbk, a retail sector from Lippo Group, ensures the plan to have a business downsizing.

MAtahari Putra Prima Director Danny Kojongian said the company will release the ownership of several subsidiaries to PT Multipolar Tbk.

“By releasing non-core business, the company’s take off to become the largest retail company in Indonesia will be easier,” he said on Wednesday (8/15).

Two subsidiaries to be released by the company are PT Matahari Putra Pacific and PT Nadya Investama. Matahari ownership in the two companies reached 100%.

Based on the financial statements on the first half of 2012, the company's revenue from non-core businesses reached IDR121.88 billion, equivalent to 5.1% of Matahari consolidated sales in 1H/2012 amounting to IDR2.39 trillion.

The business downsizing measure is the MMPA-coded company follow-up on studies conducted by Merrill Lynch. Previously, Matahari also has divested PT Matahari Department Store Tbk last year. (T07/aph)

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