Indonesian Paradise Backs Out of $21m Plaza Indonesia Deal

The established hospitality industry in Jakarta is calling on the government to impose a moratorium on permits for new hotels amid an oversupply situation and wide-scale disruption of traditional services by online booking platforms, while the industry also experiences a 'brain drain.' (Reuters Photo/Pius Erlangga)

By : Dion Bisara | on 3:15 PM September 23, 2015
Category : Business, Corporate News

Jakarta. Indonesian Paradise Property has scrapped a plan to acquire 128.2 million shares worth Rp 320 billion ($21 million) in Plaza Indonesia Realty from Singapore-based Nexus Solution, the company said in a filing to the local stock exchange on Wednesday.

The statement, quoting Indonesia Paradise Property president director Agoes Soelistyo Santoso, did not give any reasons for the cancellation, saying only that the transaction would have been financed by a loan.

Indonesian Paradise bought 905 million shares in Plaza Indonesia for Rp 2.3 trillion from Nexus last month after raising Rp 2.8 trillion from a rights issue. The deal bumped up its stake in Plaza Indonesia to 25.91 percent from 15.09 percent previously.

Amelia Gozali, the daughter of Plaza Indonesia founder Boyke Gozali, controls Indonesian Paradise Property, which owns and operates numerous hotels through its subsidiaries.

Plaza Indonesia Realty owns several high-profile assets in downtown Jakarta, notably the Plaza Indonesia shopping center and the adjoining Grand Hyatt hotel and The Plaza office tower.

 

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