Matahari to Pay Dividends of IDR10.4 per Share

Friday, 27 April 2007 18:17:12
StockWatch (Jakarta) - Retail company PT Matahari Putra Prima Tbk (MPPA) has planned to pay dividends for the 2006 fiscal year at IDR10.4 per share or IDR49 billion or 30.5% of the total 2006 net profit that reaches IDR160.496 billion.

"We have a commitment that we will pay dividends every year, although the company statutes stipulates that the dividend pay-out ratio should be only 20% if the company books net profit below IDR200 billion. But we have decided to use 30% of the profit for dividends as an appreciation to the shareholders," Matahari director Danny Konjongian said.

Konjongian said today (27/4) after the company's AGM in Jakarta, that the rest of the net profit which is IDR110 billion will be retained and IDR2 billion will be kept as reserve. "The retained profit will be used for financing the business expansion," he added.

He said the company has allocated a capital expenditure of IDR1.1 trillion this year for financing the opening of new outlets, renovation and investment in information technology.

Matahari has planned to open five new outlets of Matahari Department Stores, 11 hypermarkets/supermarkets, and renovate seven hypermarkets. Besides to open outlets, Matahari also has planned to close three department stores and five hypermarkets. (sup/bud)