Ciputra Conglomerate's Property Developers Disburse Rp367.44 Billion to Annex 15 Percent Shares of Metropolitan Land

Illustration. (Photo: Doc. Ciputra Development)

JAKARTA - The Indonesian property giant, PT Ciputra Development Tbk (CTRA) has taken corporate action which is considered a strategic step in expanding its business. The company owned by the late Ciputra conglomerate has completed the acquisition of 15 percent of PT Metropolitan Land Tbk (MTLA) shares.

CTRA's Managing Director, Harun Hajadi said, PT Ciputra Development Tbk through its subsidiary, PT Ciputra Nusantara acquired 1,148,268,950 MTLA shares or 15 percent of MTLA shares at a price of Rp320 per share with a nominal transaction of Rp367.44 billion.

"We think that with the share price of the acquisition, MTLA is very undervalued. MTLA has a prospective land bank, excellent performance, and a solid management team. It can also be seen that during the pandemic the company showed its resilience and was able to adapt quickly," said Harun.

"We believe this investment can be an investment with good returns and in the long term can add value not only to CTRA but also to MTLA," added Harun.

Director of CTRA Nanik J. Santoso added, CTRA and MTLA both have a good and strong brand image in the property industry.

"In addition, another consideration is that during the COVID-19 pandemic, CTRA and MTLA's business performance was good and stable. These things convinced us that the acquisition of 15 percent of MTLA shares was the right decision," said Nanik.

Company Director and Corporate Secretary Tulus Santoso added, CTRA management is optimistic that the acquisition of 15 percent stake in the developer of Metropolitan Mall (MM) Bekasi and Grand Metropolitan Mall will have a positive impact on the company because it is a profitable investment category.

"It is hoped that in the future we will achieve even better business growth," said Tulus Santoso.