Manager Of Hypermart Owned By Conglomerate Mochtar Riady Is Eyeing IDR 890 Billion From Rights Issue, 16 Percent Of It To Pay Debts To BNI And CIMB Niaga

Hypermart outlet. (Photo: Doc. Supermal Karawaci)

JAKARTA - Manager of Hypermart outlets, PT Matahari Putra Prima Tbk (MPPA) will hold a limited public offering (PUT VI) or rights issue to increase capital. The retail company owned by the boss of the Lippo conglomerate, Mochtar Riady, will carry out a pre-emptive right of 1.17 billion shares of common stock or new shares.

The nominal value in the rights issue is Rp50 per share offered with an exercise price of Rp760 per share. This amount represents a maximum of 13.46 percent of the issued and fully paid capital after the PUT VI.

As a result, from this corporate action, the company will raise funds of as much as IDR 890.11 billion. In an official statement quoted on Thursday, October 14, all funds obtained from the PUT VI after deducting the costs for the PUT VI will be used for three things.

First, around 16.9 percent will be used to pay part of the company's principal debt to PT Bank Negara Indonesia (Persero) Tbk (BBNI) and PT Bank CIMB Niaga Tbk (BNGA).

To BNI, through PUT VI, the company will pay Rp. 105 billion with details of Promissory note (Promissory note) for the period of July 20 - October 23, 2021, worth Rp. 55 billion and August 23 - November 22, 2021, Rp. 50 billion. Meanwhile, the total debt balance after payment will be Rp395 billion from the position of Rp500 billion as of October 7, 2021.

Meanwhile, to CIMB Niaga, the company will pay Rp45 billion with details on the Promissory Notes from October 8, 2021 - January 7, 2022, worth Rp. 45 billion. So the balance of debt after payment will be Rp205 billion from Rp250 billion as of October 7, 2021.

Second, 8.5 percent of the rights issue proceeds will be used for capital expenditures, including for store renovations, information technology and omni-channel infrastructure development, as well as new store expansion. Third, 74.6 percent will be used for working capital, among others, for the purpose of improving inventory quality through purchasing merchandise from suppliers.

"If the proceeds from the PUT VI are not sufficient to finance working capital, the company will look for other financing sources, among others, through additional credit facilities obtained from banks. for the payment of part of the principal debt, capital expenditures and working capital of the company," explained the management of Matahari Putra Prima.

For information, the company which manages Hypermart, Foodmart Primo, Smart Club, Hyfresh and Boston Health & Beauty, and FMX outlets, recorded solid sales achievements during the first semester of 2021. During this period, the company was able to record gross sales of more than Rp 2 trillion or a growth of 16.2 percent, as well as online sales which grew 21.3 percent compared to the first semester of 2020.

The increase in sales is also in line with NielsenIQ data, which states that Matahari Putra Prima's market share continues to grow and reaches 24.1 percent in the supermarket and hypermarket markets. Transforming to an offline to online (O2O) business, was able to bring the company to record positive financial performance growth in the first semester of 2021.