|
Matahari Putra Prima Tbk.
Released : February 15, 2010 PEFINDO puts the “idA+” ratings of PT Matahari Putra Prima Tbk. (MPPA or the Company), MPPA’s Bond III/2009 of IDR302 billion and MPPA’s Sukuk Ijarah II/2009 of IDR226 billion on “Creditwatch with negative implications” following the divestment plan of PT Matahari Department Store Tbk. (MDS) to CVC Capital Partners (CVC) through Meadow Asia Company Limited (MAC) with total value of around IDR7.2 trillion. The Creditwatch indicates the potential for MPPA’s weakening overall credit profile after the divestment. As of September 30, 2009, MDS provided more than 50% of total MPPA’s revenues and around 70% of EBITDA. MPPA’s business profile could be weaker as it will only depend on food related business which provides relatively thin margin despite its high turnover. Nevertheless, the Company’s ultimate financial risk profile will depend on how it utilizes the large cash balance acquired from the divestment. Should it use the majority of the fund to repay the debts materialize, the Company’s financial leverage level will be significantly improved and interest expense significantly reduced.
MPPA and MAC signed a Sale and Purchase Agreement on 23 January 2010, and the finalization of the transaction will depend on shareholders and regulatory approvals. MPPA will sell its 90.76% equity interest in MDS at a price of IDR2,705.33/share. MPPA will continue maintain a minority interest in MDS indirectly through 20% ownership in MAC. Previously in November 2009, MPPA restructured its department store business by transferring its department store assets to PT Pacific Utama Tbk. (LPPF), an affiliated party, with total value of IDR430 billion. LPPF then changed its name to MDS in December 2009.
MPPA is a leading retailer in Indonesia serving middle to middle up customer segments. At end of 2009, MPPA operated 87 Matahari Department Store (MDS), 26 Foodmart, 46 Hypermart, 54 Boston HBC Center, 16 Times Book Store and 72 TimeZone permanent outlets nationwide. As of September 30, 2009, the Company’s major shareholders were PT Multipolar Corporation Tbk. with 50.0653% ownership and PT Star Pacific Tbk., previously known as PT Lippo E-Net Tbk. (6.7922%).
PEFINDO will closely monitor the development of the divestment plan and the usage of the divestment funds on the MPPA’s overall business strength and financial performance. Rating Period: February 5, 2010 – May 5, 2010
Contact Analyst: Vonny Widjaja & Niken Indriarsih
|
