Meadow Asia Company Ltd is keen to merge PT Meadow Indonesia with PT Matahari Department Store.
In its statement published today, the subsidiary of CVC Capital Partners Ltd will receive 6,849.95 shares of Matahari for each share of Meadow Indonesia. Therefore the merger will not be diluting minority ownership in Matahari. It also will not increase capital when the two companies merge.
Meadow Indonesia owns 98.15% of Matahari. The companies will seek shareholders’ approval scheduled on September 20, 2011.
As earlier reported, the market authority indicated that the merger plan has no problem as they want to have one board of directors to run for the two companies for efficiency reason.
However the management of Matahari is yet to respond to a number of additional queries from Bapepam-LK about the merger plan.
Matahari Corporate Secretary Miranti Hadisusilo explain the company is targeting sales growth of between 10% and 15% this year from last year's sales of Rp7.9 trillion.
The company will also build 10 new outlets this year in Java and Kalimantan islands. Miranti said the opening of new outlets has been implemented at Artha Gading Mall and Kalibata Mall, Jakarta.
The LPPF-coded stock dropped 1.82%, or Rp50, to Rp2,700 on July 28 in Jakarta, before it was suspended by the market authority.
Disclosure: No position at the stock mentioned above.
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