Matahari offers new Notes

Matahari International BV, a company controlled by giant retainer PT Matahari Putra Prima (MPPA) Tbk, offers an exchange of Existing Senior Notes US$150 million 9.5% due this year with new Senior Notes due 2012.

Matahari told market authorities that it also offers certain incentives to those agreeing to set aside several consents in the existing notes (consent fee offer). But existing notes holder can't concurrently participate in both exchange offer and consent fee offer.

Matahari told market authorities earlier that it had repurchased US$35 million out of the US$150 million Senior Notes.

Matahari is the largest retailer in Indonesia with over US$1 billion sales revenue last year. The company currently has market capitalization of around US$350 million. Matahari reported net profit of Rp36 billion in the first quarter 2009, doubled from the same period last year even though its operating profit actually halved to Rp43.9 billion on higher costs of operation.

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