Bakrie announces acquisition plan<\/p>\n
JAKARTA (JP): PT Bakrie & Brothers (B&B) said yesterday it
\nwill acquire several companies included in its core businesses
\nand procure new equipment for business diversification.<\/p>\n
Bakrie & Brothers is a holding company with three core
\nbusinesses -- telecommunications, infrastructure facility
\nmanufacturing and plantations.<\/p>\n
"Bakrie & Brothers will acquire PT Indocopper Investama
\nCorporation (IIC), PT Seamless Pipe Indonesia Jaya (SPIJ), PT
\nArutmin Indonesia (AI) and PT Catur Swasakti Utama (CSU)," Tanri
\nAbeng, president of the company, told reporters after an
\nextraordinary meeting of its shareholders here yesterday.<\/p>\n
"We will also procure new equipment to manufacture 24 inch
\npipe and SAW pipe as part of our product diversification
\nprogram." Tanri said.<\/p>\n
The company's president said the acquisition and procurement
\nof equipment will be financed by the proceeds of its rights share
\nissue.<\/p>\n
Tanri said B&B will sell 189.54 million rights shares at Rp
\n6,500 (US$3) per share to raise Rp 1.2 trillion ($555.56 million)
\nin fresh funds. The current price of B&B's shares is Rp 8,200
\n($3.79) per share on the Jakarta Stock Exchange and Rp 7,500
\n($3.47) per share in the Surabaya Stock Exchange.<\/p>\n
He said 49.64 percent of the funds will be used to acquire
\n49.01 percent of IIC's shares, 12.05 percent to acquire 37.52
\npercent of SPIJ's shares, 3.56 percent to acquire 20 percent of
\nAI's shares, 3.52 percent to buy all of CSU's shares and the rest
\nfor debt repayment.<\/p>\n
Tanri said the debt payment will eliminate B&B's debts of Rp
\n250 billion ($115.74 million), thereby reducing the debt equity
\nratio of Bakrie Group to 0.5 percent from 2.5 percent at present.<\/p>\n
He furthermore said with the decrease in the debt equity
\nratio, the company's debt servicing costs will decline sharply,
\ncontributing to its profitability.<\/p>\n
The company's after-tax profit rose by 600 percent to Rp 26.3
\nbillion ($12.18 million) last year from Rp 4.2 billion in 1992.<\/p>\n
During the same period, the company's total assets rose to Rp
\n824.92 billion ($381.91 million) from Rp 372.61 billion. (02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bakrie-announces-acquisition-plan-1447893297",
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