Lippo Karawaci sold Lippo Mall Puri worth IDR 3.5 trillion to affiliated companies
JAKARTA - PT Lippo Karawaci Tbk (LPKR), the largest property company in Indonesia by total assets and revenue, has received a positive signal to continue selling Lippo Mall Puri to Lippo Malls Indonesia Retail (LMIR) Trust.
In an official statement received by idnfinancials.com, LPKR's management explained that currently LMIR Trust had received support from its shareholders to buy Lippo Mal Puri at a price of IDR 3.5 trillion. "The next step to complete the sale of Lippo Mall Puri to LMIR Trust is the completion of rights issue by LMIR Trust in the next few weeks," said the management of LPKR.
For information, the rights issue that will be carried out by LMIR Trust has received approval from its shareholders. Afterward, LMIR Trust will use the proceeds from the rights issue to acquire Lippo Mall Puri, with a combination of other sources of funds such as bank loans and vendor funding.
LKPR, as the owner of 32% shares in LMIR Trust, has also stated its commitment to become a standby buyer in the rights issue. "LPKR will remain a standby buyer of the rights issue and is interested in increasing its ownership in LMIR Trust to support this transaction if needed," said LPKR management.
For information, LMIR Trust is a company listed on Singapore Stock Exchange, with the listing code: REIT. At the end of September 2020, LMIR Trust's total assets were recorded at US$ 1.6 billion. (KR/VA)