Lippo Karawaci jacks up stock ownership

JAKARTA: PT Lippo Karawaci Tbk has acquired 27.24% shares of Lippo-Mapletree Indonesia Trust as well as 40% shares of Lippo Mapletree Indonesia Retail Trust Management Ltd, for US$165 million.Such acquisition jacks up Lippo Karawacis shares ownership in Lippo-Mapletree Indonesia Retail Trust (LMIRT) and Lippo Mapletree Indonesia Retail Trust Management Ltd (LMIRT Mgt) to 29.5% and 100% respectively, Lippo Karawaci Vice President and Head of Corporate Communication Danang Kemayan Jati said.Prior to this, Lippo Karawaci controlled 2.26% shares of LMIRT and 60% shares of LMIRT Mgt. The LMIRT stocks happen to be affiliated stocks from Lippo Group while the remaining 9.02% was disposed from Mapletree LM Pte. Ltd.The company has signed sales and purchase agreement (SPA) with Mapletree Capital Management Pte. Ltd and Mapletree LM Pte.Ltd regarding to such shares disposition on 20 May. This corporate action may be completed in 21 workdays subsequent to such SPA agreement, he said yesterday.According to Danang, this corporate action may bolster mal retail business unit as well as the companys management asset and place LMIRT and LMIRT Mgt to be in one corridor with Lippo Malls Group.It enables the company to facilitate US$2 billion mal assets to LMIRT over the next three years.It will boost LIMRTs mall assets by US$798 million to US$4 billion in five years.As widely acknowledged, the company plans to hold IDR957 billion or US$112 million rights issue at IDR660 per share merely to finance such acquisition. (T02/NOM)