Lippo Group keeps First Media

JAKARTA: Lippo Group keeps its majority shares in PT First Media Tbk for a short term, although market has known the issue which led the jump in the company's stocks.An executive familiar with the First Media's development plan admitted that he could not understand how the rumor could emerge. In fact, the company belonging to James Riyadi family is only seeking a business partner.First Media will surely not be released. There is no intention to do it, no plan, and no talk with foreign investors about it, he told Bisnis yesterday.The possible option, as he added, is that the company will engage with other parties of several business units under First Media. But there has been no final decision with whom it will partner, he said.Rumor on the share disposal emerged following the news in Wall Street Journal quoting an anonymous person saying that Lippo is looking for buyer for First Media. The market responded to the rumor by buying First Media's stocks.Lippo is reportedly eyeing US$600 million to US$800 million from selling majority shares in First Media. More than 10 companies and private equity funds are reportedly interested in buying the shares.At closing session yesterday, the KBLV-coded company surged 5.98% to IDR1,240, heading to an annual gain of 8%. Its market capitalization reached IDR2.16 trilllion.Kenaikan serupa juga menimpa Waran Seri II First Media (KBLV-W2) yang naik Rp40 (3,41%) ke level Rp 1.210 sesaat setelah dibuka kemarin. Sebelumnya efek ini disuspen karena melonjak 7 kali dari 17 Januari-19 Januari 2011 ke level Rp1.590 per unit.Warrant series II of First Media (KBLV-W2) jumped IDR40 (3.41%) to IDR1,210 immediately after opening yesterday. Earlier, the securities was suspended for jumping 7 times to IDR1,590 per unit during January 17 to January 19, 2011.No confirmationIn the meantime, Corporate Secretary of PT First Media Tbk Harianda Noerlan could not tell exactly the plan of Lippo Group to release its shares in First Media.Honestly, I could not tell anything. We have no comment so far, he said.In an official statement to the market authority, PT Indonesia Stock Exchange (IDX), First Media has not yet received any information from Across Asia Limited as the major owner of 55.11% shares in First Media concerning the stock disposal plan.As written in the statement, First Media affirmed that Across Asia is a public company listed in Hong Kong Stock Exchange (HKSE).An analyst at PT BNI Securities Akhmad Nurcahyadi viewed that the rumor on Lippo Groups plan was reasonable, seeing the companys experience in property business. (T04/NOM)