Astra may up stake in Astra Agro<\/p>\n
Bloomberg, Jakarta<\/p>\n
PT Astra International, Indonesia's biggest auto company,
\nplans to raise its stake in PT Astra Agro Lestari by buying 7
\npercent of the company from businessman Edwin Soeryadjaya at a 70
\npercent premium, to honor a commitment agreed to in 1995,
\nPresident Budi Setiadharma said.<\/p>\n
PT Pandu Dian Pertiwi, Soeryadjaya's company, and Astra
\nInternational agreed in 1995 that Pandu Dian could sell 103
\nmillion shares of Astra Agro to Astra International at a price of
\nUS$50 million, according to Astra International's audited 2000
\nfinancial report. According to filings at the end of last year,
\nPandu Dian has a 0.16 percent stake in Astra Agro.<\/p>\n
The price, equivalent to Rp 4,200 a share, amounts to a
\n70 percent premium over Astra Agro's Rp 2,475 price at today's
\nclose.<\/p>\n
"For Astra International, it's bad. Why should you buy a
\nshare for over Rp 4,000 if you can buy at Rp 2,400," said Erwan Teguh,
\nan analyst at PT Danareksa Sekuritas. "But they have no choice,
\nthey have to honor the agreement."<\/p>\n
Astra International said it plans to buy the shares. In
\n2000, after Pandu Dian said it wanted to exercise its option,
\nAstra signed an agreement allowing it to defer the purchase to as
\nlate as June 15 this year by paying an annual penalty.<\/p>\n
"Astra is willing to buy Edwin's 7 percent stake in Astra
\nAgro before June 15," Budi said last night. "This
\ndepends on whether Edwin meets all the requirements. He has
\npledged the stake to Citibank." Budi didn't specify the
\nrequirements. The Soeryadjaya family founded Astra
\nInternational.<\/p>\n
Astra Agro's shares jumped 4 percent to Rp 2,475. Astra
\nInternational rose 1.7 percent to Rp 6,050.<\/p>\n
"As Pandu Dian has only a 0.16 percent stake in Astra Agro,
\nthere was speculation that Pandu may buy from the market and sell
\nit to Astra," Teguh said.<\/p>\n
At the end of March, Jakarta-based Astra International,
\nIndonesia's sixth-biggest company by market value, had a 63
\npercent stake in Astra Agro. Citibank Ltd.'s Jakarta branch had
\n6.7 percent of Astra Agro, according to an April 6 report by
\nregistrar PT Raya Saham Registra to the Jakarta Stock
\nExchange.<\/p>\n
Astra International said it will gain from the purchase in
\nthe long term, as contributions from the unit will rise, in line
\nwith increasing palm oil prices.<\/p>\n
Jakarta-based Astra Agro, Indonesia's biggest publicly
\ntraded agricultural company, posted a 22 percent increase in
\nprofit last year to Rp 280.7 billion ($32 million), helped by
\na 15 percent increase in palm oil prices.<\/p>\n
Astra Agro shares have surged 43 percent this year,
\noutperforming the benchmark Jakarta Composite Index's 16 percent
\ngain and Astra International's 21 percent rise.<\/p>\n
"Although Astra Agro's current price is relatively
\nexpensive, the company has good prospects," Budi said in
\nJakarta.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/astra-may-up-stake-in-astra-agro-1447893297",
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