JAKARTA (TheInsiderStories) – Singapore’ OUE Dining Pte. Ltd., through its unit, Oddish Ventures Pte. Ltd., announced has acquired 88.43 percent Maxx Coffee chains shares from PT Anugerah Pratama and PT Ciptadana Sekuritas, said the company on Feb. 5. Its indirect wholly-owned unit will pay Rp229 billion (US$16.36 million) in cash to the two shareholders.
MAXX Coffee was founded in 2015, and now has 80 outlets in 22 cities throughout Indonesia. The store was develop to meet the needs of modern Indonesians.
As end of 2019, the unit of Lippo Group‘ net asset value of the shares was negative Rp151 billion. OUE stated , “The acquisition will augment and synergise with the group’ continuing strategy to scale up and optimize its existing food and beverage portfolio.”
As reported, the Riyadi’ family company has been suffered on Meikarta projects and try to resolve the problems by looking fresh funds from asset sales and other schemes.
Last year, PT Lippo Karawaci Tbk (IDX: LPKR) announced has secured funding around $1.01 billion to support the businesses and pay the debts. The funding comprising of $730 million from right issue and $280 million from the completion of its asset divestment plans.
The developer said, the two fund managers, George Raymond Zage III and Chow Tai Fook Nominee Ltd., have signed an undertaking agreement to purchase rights and to subscribe the rights issue shares with a total commitment of $70 million.
While, the Riady family, through PT Inti Anugerah Pratama or its wholly owned subsidiary, acted as a standby purchaser for any remaining rights issue shares not subscribed by other shareholders.
For the divestment plans, Lippo Karawaci has objective of realizing a total of $280 million of proceeds by end 2019. On Jan. 10, the developer announced the sale of its interest in two healthcare joint ventures in Myanmar, a 40 percent stake in Yoma Siloam Hospital Pun Hlaing Ltd., and a 35 percent stake in Pun Hlaing International Hospital Lmtd., to OUE Lippo Healthcare Ltd.
The sale is expected to generate $20 million of net proceeds when the transaction is completed in first half of 2019. Then, On March 11, the company entered into a conditional sale and purchase agreement with Lippo Malls Indonesia Retail Trust, pursuant to which the developer agreed to sell the retail components of Lippo Mall Puri for an aggregate consideration of $260 million.
This funding program is set to right-size the holding companya’ balance sheet through deleveraging and repayment of up to $275 million of debt obligations, provide the company with sufficient liquidity buffer to fund debt interest and REITs rental obligations through year end 2020 and unlock shareholder value through investments in existing key projects.
Over the next three years, Lippo Karawaci intends to invest up to $100 million of the funding proceeds in the development of eight existing key projects currently under construction–Holland Village, Millennium Village, Monaco Bay Residences, St. Moritz Makassar, Kemang Office, Embarcadero, Lippo Office Thamrin and Holland Village Manado.
The cost to complete these existing projects is estimated to amount to around $275 million, and will be fully funded by the $100 million investment capital, account receivables to be received from units sold, and future sales from completed projects and projects in construction.
Other units, PT Lippo Cikarang Tbk (IDX: LPCK) is going to give debt to Meikarta’ project developer in Bekasi, East Java, PT Mahkota Sentosa Utama for working capital via rights issue. Its unit will issue 1.98 billion shares at Rp1,495 a piece to raise Rp2.96 trillion funding from the rights issue.
The company trough the unit intended to invest up to $200 million of the funding to develop Meikarta projects, by subscribing 54.4 percent rights entitlement, and acting as standby purchaser for any remaining rights issue shares not subscribed by other shareholders of LPCK. The unit planned to issue new shares with total amount $200 million.
The property project is expected to be the next breakthrough integrated development that will boast world-class infrastructure and facilities including shopping malls, international hospitals, universities, an international exhibition center, as well as a financial and technology hub.
Lastly, as part of the sale of Puri Mall, the company expects to incur transaction-related taxes and expenses and REITs rental obligations amounting to $60 million.Additionally, LPKR is committed to maintaining its existing 30.7 percent stake in LMIRT by participating in the potential future equity fundraising by LMIRT associated with the acquisition of Puri Mall.
Its estimated that this would require approximately $60 million of funding from the parent company.
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