Jakarta - PT Lippo Karawaci Tbk ("LPKR" or "Company"), Indonesia’s leading real estate company based on total assets and revenue, announced that it has divested its non-core ownership stake in First REIT and increased its stake in PT. Siloam Hospitals Tbk and PT. Lippo Cikarang Tbk. The transactions were completed over the past one month and demonstrate LPKR’s commitment to divest non-core assets and increase ownership in core subsidiaries that are trading at attractive valuations.
Since the second quarter of 2019, Lippo Karawaci has divested its stake in First REIT from 10. 5% which has raised over Rp850 billion. This is part of the management’s strategy to divest non -strategic assets. The sale was completed in 1Q20 and in the quarter alone it raised over Rp300 b illion in cash.
Lippo Karawaci increased its stake in Siloam Hospitals by 4.3% to 55.4% ownership. In a separate transaction, LPKR increased its stake in PT. Lippo Cikarang Tbk. by 3.0% to 84%. The Company is buying the shares at a compelling discount to industry and 5-year historical EV/EBITDA multiples at SILO. The average price of this acquisition is below 9.5x EV/EBITDA, while peers have historically traded at an average EV/EBITDA of over 20x. At LPCK, the discount to NAV is over 91% at the average transaction price, a significant discount to peer averages.
The Siloam transaction is the acquisition of 70 million shares at an average price of Rp5,779. The Lippo Cikarang transaction is the acquisition of 80 million shares at an average price of Rp600. Both share acquisitions were completed in two separate transactions each over the past 4 weeks. The transactions were financed with excess cash received from the divestment of First REIT, and the total cash outlay was Rp452.5 billion.
John Riady, CEO LPKR, commented, "LPKR remains consistent in our business plan to focus on property and healthcare as our core businesses. In this unprecedented time, our internal analysis reflects that the most prudent actions are to conserve cash or modestly increase our stake in our key subs idiaries." John added, "These transactions at compelling valuations has increased our ownership in Siloam to over 55% and in Lippo Cikarang to 84%.”
About Lippo Karawaci (“LPKR”) (www.lippokarawaci.co.id)
Listed on the Indonesia Stock Exchange, Lippo Karawaci (“LPKR”) is Indonesia’s leading integrated real estate company with total assets of US$4.0bn at 30 September 2019. Our core business comprises urban residential developments, lifestyle malls and healthcare. We are also actively involved in integrated developments, hospitality, township development and management, as well as asset management services.
Currently, the Company has a presence in 35 cities, and is a leading Indonesian property developer with 1,461 ha of landbank ready for development. Through our two publicly listed subsidiaries, PT Lippo Cikarang Tbk, and PT Gowa Makassar Tourism Development Tbk, of which LPKR owns 84.0% and 62.7% respectively, LPKR develops and operates urban developments at Lippo Cikarang in Bekasi and at Tanjung Bunga in Makassar. Additionally, LPKR owns 55.4% of PT Siloam International Hospitals Tbk, Indonesia’s leading private hospitals network, with 36 hospitals across 24 cities nationwide.
LPKR also has an ownership stake in a listed REIT in Singapore, namely Lippo Malls Indonesia Retail Trust with US$1.4bn of assets under management as of December 31, 2019.
For more information, please contact:
Investor Relations:
Bret Ginesky
Head of Investor Relations
[email protected]
Of f ice: +622125669078
Corporate Communications:
Danang Kemayan Jati
Vice President, Head of Corporate Communications
[email protected]
Office: +628557801299
This press release has been prepared by PT Lippo Karawaci Tbk (“LPKR”) and is circulated for the purpose of general information only. All opinions and estimations included in this release constitute our judgment as of this date and are subject to change without prior notice. LPKR disclaims any responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this press release and neither LPKR nor any of its affiliated companies and their respective employees and agents accepts liability for any errors, omissions, negligent or otherwise, in this press release and any inaccuracy herein or omission here from which might otherwise arise.
Forward-Looking Statements
Certain statements in this release are or may be forward- looking statements. These statements typically contain words such as "will", "expects" and "anticipates" and words of similar import. By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release.
