Matahari Putra Prima, a retailer and the operator of Hypermart, jumped to its highest closing price in almost two years after Singapore’s Temasek Holdings announced plans to acquire a stake in the retailer.
Shares in Matahari jumped 14 percent to Rp 1,740 on Tuesday, extending its 24 percent rally the previous day. It was Matahari’s highest closing price since March 7, 2011, when it ended at Rp 1,760. On Tuesday, the benchmark Jakarta Composite Index fell 0.3 percent.
Some 32.6 million Matahari shares were traded on Tuesday, the highest volume of trading the company had experienced since December 2010, according to data from Bloomberg.
Anderson Investments, a wholly owned unit of Singapore’s Temasek Holdings, signed an exchangeable rights subscription agreement with Indonesian investment company Multipolar on Monday. Multipolar controls a 48.4 percent stake in Matahari.
Anderson paid Rp 2.9 trillion ($299 million) for the rights, which can be converted into a 26.1 percent stake in Matahari Putra Prima, Multipolar said in a statement to the Indonesia Stock Exchange on Monday.
“This development will have a significant impact on Multipolar’s investment value in Matahari,” Eddy Handoko, president director of Multipolar, said in a statement.
Matahari currently has 80 Hypermart stores in 52 cities, as well as 28 supermarkets and 79 drugstores.
Adrian Joezer, an analyst with Mandiri Sekuritas, said in his note to clients on Tuesday, that using a rupiah exchange rate of 9,588 against the dollar as stipulated in the announcement, the deal values Matahari at Rp 2,050 per share, a 34 percent premium compared with closing price of Rp 1,530 on Monday, the day Multipolar announced the deal.
According to Adrian’s calculation, Multipolar’s total ownership in Matahari was valued at roughly Rp 5.5 trillion, 62 percent higher than its market capitalization of about Rp 3.4 trillion.
Multipolar shares lost 5.7 percent to Rp 415 on Tuesday, erasing some of their 24 percent gain on Monday.
Other than Matahari, Multipolar shares various interests with the Lippo Group, including internet provider First Media. Multipolar and the Jakarta Globe are affiliated with the Lippo Group.
