Feb 16, 2011

Multipolar to spend US$85 mio capex

PT Multipolar Tbk (MLPL), a parent of PT Matahari Putra Prima Tbk, has allocated its capital expenditure (capex) to US$75 million-US$85 million or equivalent with Rp667.5 billion-Rp756.5 billion by this year.
Director of Multipolar Reynold Ong confirmed that the fund will support the establishment of hypermart as well as department stores in Indonesia or in abroad, especially in China.
The retail business, so far, has contributed 90% of total revenue.
“This year, we plan to construct six to seven department stores or hypermart in China. Then, a store requires US$10 million fund,” he affirmed to reporters after public exposure yesterday.
The needs of capex, as he continued, will be covered from internal cash combined with operational working capital, and bank credit as well. Nevertheless, the external fund has opportunity because the financial balance is predicted to be still healthy.
In the same occasion, Reynold informed that the company changed the fund allocation from last year’s right issue by R23 billion.
Previously, the fund would be lent by PT Multifiling Mitra Indonesia Tbk. “However, Multifiling had already gained fresh fund of IPO, so the fund allocation was changed to be the working capital of Multipolar,” he said.
Today, Multipolar is executing its retail business through its subsidiary PT Matahari Putra Prima Tbk, then Multifilings for its document business, and PT First Media Tbk for its technology and multimedia business. 
Misleading information
The Head of Indonesia’s Securities Investors Community, Johannes Soetikno expressed its readiness to facilitate the retail investor, PT Multipolar Tbk following the misleading information allegation over the Matahari’s holding company.
“We shall facilitate their complaint to the capital market’s authority. There is an allegation over misleading information with regard to the dividend policy on the rights issue prospectus,” he said.
During Multipolar’s annual extraordinary meeting of shareholders last Monday, the company shared Rp77.28 billion dividend or Rp10 per share from last year’s net income as much as Rp2.8 trillion.
The 2.76% dividend with payout ratio was distinctly different from the rights issue prospectus on February 2010 stating the dividend sharing with 15%-25% ratio supposes the net income exceeds Rp100 billion.
The Lippo Group’s packed Rp2.8 trillion net income. 
"This is an obvious violation of the established dividend policy. Yet, the rejection of the retail investors was somehow neglected and Multipolar held a voting,” he said.
Responding to such rejection, the Corporate Secretary of Multipolar, Chrysologus RN Sinulingga insisted that there are no rules being violated, she instead accused those retail investors for having a short term orientation.

Disclosure: No position at the stock mentioned above. 

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