CMEL buying shares in local securities firm<\/p>\n
JAKARTA (JP): Caribbean-based investment consortium Capital
\nMiddle East Ltd. (CMEL) is buying up to 19 percent of shares of
\nsecurities firm PT Bhakti Investama to pave the way for its
\nexpansion into the Indonesian capital market.<\/p>\n
CMEL's director Nigel Oakes said on Thursday the stake in the
\npublicly listed firm would be acquired in stages to guard against
\ndisturbing the local stock market.<\/p>\n
"This afternoon CMEL is going to sign a 5 percent share
\npurchase of Bhakti Investama, and within 10 days CMEL should
\nacquire a total of 19 percent of Bhakti's shares," Oakes told a
\nnews briefing.<\/p>\n
He said the purchase of the securities company's stake would
\nhelp the Caribbean firm's operation in the Indonesian market.<\/p>\n
"We consider Bhakti Investama to be our strategic partner in
\nIndonesia. Our further investment in Indonesia will be through
\nclosely collaboration with Bhakti."<\/p>\n
He said the Indonesian market remained promising despite
\nreports of unrest and fears of growing political tension ahead of
\nthe country's June general election.<\/p>\n
"CMEL is confident that after the June election, overseas
\ninvestors will burst into Indonesia, but by then we will not get
\nthe best deals," he said.<\/p>\n
CMEL has committed to investing US$250 million to $300 million
\nin listed companies with a strong management team, fine previous
\ntrading record and which were undervalued, Oakes said.<\/p>\n
"Besides those criteria, CMEL will have three categories of
\ninvestment, namely, property, loan default and loan
\nrescheduling," he said.<\/p>\n
"CMEL sees that a large portion of property shares in
\nIndonesia are badly undervalued. We also see there are many
\ncompanies with high competency which are experiencing a loan
\ndefault and loan rescheduling. These companies cannot operate
\nmerely because of financing problem. We want to help these
\ncompanies."<\/p>\n
CMEL, with manages portfolio investments of $2.2 billion
\nworldwide, expects a 20 percent return per year from its
\nIndonesian investment. He added that the company booked an
\naverage return of 18.2 percent per year for the last five years.<\/p>\n
The company, which acquires funding from wealthy individuals
\nmostly in the Middle East, has also invested in other Asian
\ncountries, including the Philippines, Thailand and Bangladesh,
\naccording to Oakes. (02)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cmel-buying-shares-in-local-securities-firm-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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