Connery Bought Its Shares Until The Price Of Multipolar Conglomerate Mochtar Riady Has Flown 850 Percent, Why?

Illustration. (Photo: Doc. Antara)

JAKARTA - Connery Asia Limited recently made a large purchase of shares of PT Multipolar Tbk (MLPL). The company bought 1.05 billion MLPL shares with a transaction value of Rp582.75 billion.

In an information disclosure on the Indonesia Stock Exchange (IDX) website, quoted on Friday, June 11, Director of Multipolar Aris Munandar said that on June 7, 2021, Connery purchased 1.05 billion MLPL shares, equivalent to 7.2 percent. After the transaction, Connery holds 11.61 percent of the company's shares belonging to the conglomerate Mochtar Riady, from 4.4 percent previously.

"The purpose of the transaction is investment with direct ownership status," said Aris.

Connery made transactions with a purchase price of IDR 555, bringing the total transaction to IDR 582.75 billion. Meanwhile, after that, the MLPL shares were suspended by the stock exchange on June 8, 2021.

Previously, MLPL's stock was perched at Rp675. The termination of MLPL's shares is carried out in the regular market and cash market.

IDX also appeals to interested parties to always pay attention to the disclosure of information submitted by the company.

MLPL's shares have been suspended by the stock exchange twice in the last one month. The stock exchange previously also suspended MLPL shares on Thursday, May 20 after experiencing a significant price increase.

Previously, Connery also held a 14.26 percent stake in the manager of Hypermart, PT Matahari Putra Prima Tbk. (MPPA). MPPA is a subsidiary of MLPL with 38.33 percent ownership.

For information, before being suspended for the second time, MLPL's shares had flown 850.70 percent to Rp675 since the beginning of the year. MLPL's market capitalization was recorded at Rp9.88 trillion.

Most recently, the Lippo Group issuer is currently preparing a corporate action. Management stated that it had prepared a maximum of Rp425 billion for the buyback of shares.

The number of shares to be repurchased is a maximum of 10 percent of the company's paid-up and issued capital or a maximum of 1,463,963,247 shares. MLPL said the maximum buyback price was Rp720 per share.

Meanwhile, the buyback is planned to be carried out from July 21, 2021 to January 20, 2023. This agenda will be carried out after obtaining the approval of the shareholders at the Extraordinary General Meeting of Shareholders (EGMS) on July 19, 2021.

"The company views that the current price of the company's shares does not reflect the actual value/performance of the company, especially considering the potential value of the company in the future," explained the management of MLPL.