Bakrie to acquire two subsidiaries<\/p>\n
JAKARTA (JP): Shareholders of PT Bakrie and Brothers (B&B), a
\nconglomerate controlled by the Bakrie family, yesterday approved
\nits plan to acquire PT Bakrie Investindo's (BI) shares in two
\nsister companies -- PT Indocopper Investindo and PT Arutmin
\nIndonesia at US$287 million.<\/p>\n
The company's president, Tanri Abeng, told newsmen after an
\nextraordinary meeting of the shareholders that B&B will acquire
\n49 percent or 10,500,000 shares of BI's shares in Indocopper at
\n$267.5 million and 20 percent or 1,600 shares of BI's shares in
\nArutmin at $19.2 million.<\/p>\n
Indocopper was established in 1991 to acquire a 10-percent
\nstake of PT Freeport Indonesia, an affiliate company of American
\nFreeport-McMoRan Gold and Copper which has been granted rights by
\nIndonesian government to explore and produce copper in Irian
\nJaya.<\/p>\n
Aburizal, B&B's chief commissioner, reportedly spent $213
\nmillion for the Freeport stake and after 10 months, he sold half
\nof the stake for $212 million.<\/p>\n
Indocopper is now 50.1 percent owned by BI, 49 percent by
\nFreeport-McMoRan Copper and Gold Inc. and the remainder by a
\nnumber of businessmen. Indocopper was listed on parallel board in
\n1992.<\/p>\n
Arutmin, established in October 1981, is engaged in the joint
\nexploration and mining of coal deposits and other minerals in the
\n1.26 million hectares of mines in Southeast Kalimantan. The other
\nside of the venture is PT Tambang Batubara Bukit Asam, a state-
\nowned coal mining company.<\/p>\n
Based on Arutmin's 1993 financial report, the company is 80
\npercent owned by America's BHP Minerals Exploration Inc. and 20
\npercent by BI.<\/p>\n
Finance<\/p>\n
According to Tanri, B&B's planned acquisition will be financed
\nby the issuance of rights shares worth about $600 million. He did
\nnot specify the date for the rights issue.<\/p>\n
Tanri said the funds to be raised from the rights offering
\nwill be used not only to finance the acquisition but also to
\nfinance B&B's business expansion and to repay its debts.<\/p>\n
He said that after the rights issue, the ratio of the
\ncompany's debt against its equity will improve from 5:1 to 1:2.<\/p>\n
The shareholders also approved the company's proposal to
\npurchase Wisma Bakrie, an eight-story building located in
\nJakarta's golden triangle district, from PT Catur Swasakti Utama
\n(CSU), a company which is 92.5 percent owned by BI, at $19
\nmillion.<\/p>\n
Tanri said that based on commercial and efficiency
\nconsideration, B&B will purchase the building from CSU because it
\nhas occupied one third of the building's space and planned to
\nexpand its occupancy.<\/p>\n
The meeting also approved B&B's plan to issue 31,590,000 bonus
\nshares for its existing shareholders.<\/p>\n
Tanri said that every two existing B&B shares will be entitled
\nfor three bonus shares.<\/p>\n
B&B, established in 1951 by the late Achmad Bakrie, operates
\nin manufacture, telecommunications and plantations.<\/p>\n
Achmad Badrie was Aburizal's father.<\/p>\n
B&B's revenues increased from Rp 213.7 billion in 1992 to Rp
\n311.1 billion in 1993 and its after-tax profit rose from Rp 4.1
\nbillion to Rp 26.4 billion.<\/p>\n
In 1993, 64 percent of the company's income was generated from
\nthe manufacture division, 24.3 from plantations and 11.7 from
\ntelecommunications.<\/p>\n
The company's assets increased from Rp 370.6 billion as of
\n1992 to Rp 824 billion as of the end of last year.(03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bakrie-to-acquire-two-subsidiaries-1447893297",
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