Bakrie to sell Arutmin stake within two months<\/p>\n
JAKARTA (JP): Bakrie and Brothers Group said Thursday it was
\noptimistic the sale of its 20 percent stake in East Kalimantan
\ncoal mining firm PT Arutmin Indonesia could be signed within the
\nnext two months.<\/p>\n
The business group's president, Tanri Abeng, said negotiations
\non the sale were underway.<\/p>\n
"I hope we can sign the deal within the next two months," he
\nsaid but refused to say who would buy its stake.<\/p>\n
He said there had been five bidders so far, three from Japan,
\none from the United states and one from Indonesia.<\/p>\n
Tanri said Bakrie had provided the terms of reference for the
\nbid.<\/p>\n
Bakrie spent about US$ 40 million buying its 20 percent stake
\nand hoped to pocket about $80 million from its sale, he said. The
\nremaining 80 percent is owned by Australia's Broken Hill
\nProprietary Ltd.<\/p>\n
He said Bakrie was selling its stake to free up capital to
\nfinance the company's expansion. "We need cash for the expansion
\nof our core businesses."<\/p>\n
The company's core businesses are telecommunications,
\ninfrastructure and plantations.<\/p>\n
Tanri said selling its stake in Arutmin was more effective
\nthan waiting for earn dividends from the firm in five years.<\/p>\n
He said coal mining was a long term investment so one could
\nnot expect to earn dividends soon, he said.<\/p>\n
"We need cash right now while the company cannot not provide
\nit for us," he said.<\/p>\n
Earlier this year Bakrie sold its 49 percent stake or 10.5
\nmillion shares in PT Indocopper Investama Corporation, which owns
\n9.6 percent of PT Freeport Indonesia, to the Nusamba Group, which
\nis chaired by the politically well-connected Mohammad 'Bob'
\nHasan.<\/p>\n
Bakrie sold its stake for Rp 724.24 billion (around $302.7
\nmillion).<\/p>\n
Tanri said Bakrie planned to invest about Rp 900 billion this
\nyear to boost its core business, of which Rp 450 billion would be
\nfor telecommunications, Rp 370 billion for infrastructure and Rp
\n80 billion for plantations.<\/p>\n
Bakrie's unaudited net profit was about Rp 193 billion in
\n1996, up from Rp 120 billion in 1995.<\/p>\n
This year, net profit is projected to be Rp 416 billion. (09)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bakrie-to-sell-arutmin-stake-within-two-months-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }