Sunday, March 21, 2010

Matahari offer sweetener

PT Matahari Putra Prima Tbk plans to provide incentive to the bond holders that will sell their ownership worth totally IDR528 billion. The company plans to pay all bonds in rupiah and US dollar denominations. The payment scheme will be discussed on the general meeting of bond holders and general meeting of sukuk ijarah holders by end of March.
The payment of rupiah denominated bonds worth totally IDR528 billion will be prioritized before than paying the US$200 million or IDR1.82 trillion USD denominated bonds.
There are some investors calling for a meeting with Matahari management. They need for detail explanation on the sales of 90.76 percent shares of Matahari subsidiary firm, PT Matahari Department Store Tbk (MDS), and bonds put option.
The meeting will initiate the formation of small team consisting of investors representative of each institution, one investment manager, one from pension fund, one from insurance, and one from bank. The team is to be established next tomorow.
There are three options on the meeting. First, keeping the relatively high coupon of 16 and 17 percent Second, selling the bonds due to the unclear prospect of Matahari performance following MDS major divestment. The third option is to call for sweetener given that they had purchased the bonds at secondary market with premium price.
Many bond holders prefer the last option here. the rupiah bond yield of Matahari at secondary market is currently falling into 11 percent or far lower than the bond coupon of 17 percent.

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