IBRA to sell stake in iron company and subsidiary<\/p>\n
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
\nwill sell its 97.69 percent stake in galvanized iron sheet
\nmanufacturer PT Kerismas Witikco Makmur as part of its asset
\ndisposal program to help finance the state budget.<\/p>\n
Dasa Sutantio, director of IBRA's Asset Management Investment
\n(AMI) unit, said here on Monday the sale would also involve
\nKerismas's principal debt of Rp 127.3 billion ($134 million), and
\nthe agency's 50.14 percent stake in PT Semarang Makmur.<\/p>\n
PT Kim Eng Securities has been appointed as financial adviser
\nfor the sale of Kerismas, Dasa told a media conference.<\/p>\n
Kerismas -- with factories in Cilincing, North Jakarta and
\nBitung, North Sulawesi -- produces plain and colored galvanized
\niron sheets, primarily for use as roofing material. It also
\nproduces construction material such as wall cladding, and floor
\nplates for reinforcing concrete floors.<\/p>\n
These products are marketed under the brand names of Gajah
\nBerlian, Indolock, Perkasadek, Krisdek, and Perkasa Roof Tiles.<\/p>\n
Semarang Makmur produces plain galvanized iron sheets under
\nthe brand name of King Elephant, Kinglock, and Kingdeck, and has
\na factory in Semarang, Central Java.<\/p>\n
"The sale is open to any investors willing to buy the whole
\npackage," Dasa said, adding that a strategic sale was seen as the
\nbest way to obtain optimum value.<\/p>\n
The sale process comprises two stages, he said, the first
\ninvolving interested parties submitting their preliminary bids.<\/p>\n
"This is to determine their seriousness in buying the
\ncompany," he said.<\/p>\n
The preliminary bids would then be followed by a due diligence
\nphase where among other things potential buyers are taken to the
\ncompany's factories for a site visit, Dasa said.<\/p>\n
IBRA owns PT Kerismas and PT Semarang through PT Holdiko
\nPerkasa, which was established in 1999 in connection with the
\ndebt settlement agreement between Salim Group to the government.<\/p>\n
As part of the agreement, the Salim Group transferred shares
\nand assets in more than 100 companies to Holdiko, which will
\nsubsequently transfer the proceeds from the sale of the assets to
\nIBRA.<\/p>\n
"The second stage involves the final bids by investors, after
\nwhich Holdiko and IBRA will determine the winner," he said.<\/p>\n
Dasa said the sale was expected to be concluded by the end of
\nMay this year.<\/p>\n
Holdiko's corporate finance manager Stanley Halim said that
\nKerismas assets as of August 2000 were worth Rp 311 billion
\n($32.7 million), with equity worth Rp 115 billion.<\/p>\n
Kerismas's total installed production capacities of plain
\ngalvanized iron sheets and colored galvanized iron sheets are
\n98,820 tons per year and 48,000 tons per year respectively.<\/p>\n
The company operates at a utilization rate of more than 90
\npercent, he said.<\/p>\n
As of August 2000, Kerismas recorded sales of Rp 282.3 billion
\nand gross profit of Rp 47.6 billion, Stanley added.<\/p>\n
Dasa said that more than 40 local and foreign investors have
\nexpressed interest in buying the stakes.<\/p>\n
"Some interested parties came from the financial sector, but
\nmostly are from those that have an interest in this kind of
\nbusiness," he said.<\/p>\n
Holdiko director Scott Coffey said that together with IBRA,
\nthe company plans to announce an additional list of assets for
\ndisposal this year.<\/p>\n
"Together with the sale of our stakes in Indocoal, Indomaret,
\nIndosiar, Sulfindo, and Kerismas, Holdiko aims to raise over Rp 1
\ntrillion from the sale of these spill-over assets," he said.(tnt)<\/p>",
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