Dec 31, 2010

Modern injects Rp100 bio into 7-Eleven

PT Modern Internasional Tbk jacks up capital in its subsidiary, PT Modern Putra Indonesia, by Rp100 billion to Rp199 billion.
Directors Modern Internasional Henri Honoris and Donny Sutanto in a disclosure to Indonesia Stock Exchange yesterday said that the capital of its unit has also boosted to Rp300 billion from Rp100 billion.
They explained that the increase in equity placement was aimed to support the unit in developing and operating the convenience store chain 7-Eleven in Java Island as the master franchise for the chain store has been approved for 20 years with 10-year extension.
“Moreover, the capital injection is aimed to strengthen the capital of the unit,” they said.
Jakarta-based Modern Putra Indonesia, which was established in 1988, runs the business of general trade. The minority shareholder of the unit is PT Honoris Industry.
Initially, Modern Putra developed Fuji Image Plaza outlets and since November 2009, it has been developing and operating 7-Eleven convenience store
7-Eleven convenience store sells fast food, beverages and retail products. Next year, the management expects to open 36 stores.
Henri explained that one company strategy is to convert Fuji Image Plaza by combining the photography product store with 7-Eleven.
For the last three years, the number of Fuji Image Plaza outlets has been drastically decreased. There were 117 outlets for photo printing in 2008, decreasing to 90 in 2009 and there left only 82 outlets in September 2010. Meanwhile, through December 30, 2010, the number of 7-Eleven outlets has increased to 20 stores.

Disclosure: No position at the stock mentioned above.  

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