IRC-led investor group in hunt for Astra stakes<\/p>\n
JAKARTA (JP): Hong Kong-based fund management company
\nIndonesian Recovery Company Co. (IRC) has placed a bid with the
\nIndonesian Banking Restructuring Agency (IBRA) to acquire IBRA's
\n45 percent stake in PT Astra International.<\/p>\n
IRC director Robert Appelby said on Friday that IRC
\nrepresented a consortium of investors interested in the country's
\nlargest automaker. He declined to name the other investors.<\/p>\n
\"We're looking for an interest from the sale by IBRA, which is
\nabout 45 percent of Astra's shares,\" Appelby, also a commissioner
\nat PT Transindo Multi Prima, said after announcing Transindo's
\nbid to acquire ailing cigarettemaker PT Bentoel Prima.<\/p>\n
Appelby said IRC was offering between Rp 3,500 to Rp 4,500 per
\nAstra share, but said it could be increased if other investors
\nplaced a higher bid.<\/p>\n
\"It will depend largely on the due diligence process, we're
\ncurrently looking at Astra's business,\" Appleby said.<\/p>\n
IRC was founded last year by Hong Kong-based debt investment
\nmanager Asia Debt Management and Indonesia's investment bank PT
\nBhakti Investama to buy corporate debt and tradable assets in
\nIndonesia.<\/p>\n
Bhakti Investama is one of three listed investment banking
\nfirms in Indonesia offering services in merger and acquisition
\nactivities, financial\/debt restructuring and investment services.<\/p>\n
Bhakti Investama has cooperated with the Quantum Fund of U.S.
\nfinancier George Soros and often represents the company's
\ninterests in Indonesia.<\/p>\n
Asia Debt Management, with fund assets of US$450 million,
\noffers investors the opportunity to participate in distressed and
\nhigh-yielding Asian debt.<\/p>\n
Appleby, also a director at Asia Debt Management, said that
\nIRC was established specifically to facilitate investors
\ninterested in betting their money in Indonesian assets.<\/p>\n
\"So far we have invested some $100 million in Indonesia,\" he
\nsaid.<\/p>\n
Asked about IRC's chance of winning IBRA's Astra stake,
\nAppleby expressed confidence.<\/p>\n
\"We're carefully studying the competition, but we have a good
\nchance in winning the process,\" he said.<\/p>\n
A number of other investor group have expressed their interest
\nin acquiring IBRA's 45 percent stake in Astra after IBRA's
\npreliminary agreement with a U.S. investor group, led by Gilbert
\nGlobal Equity Partners and Newbridge Capital Ltd, fell through.<\/p>\n
Among other parties reportedly interested in Astra are Lazard
\nAsia Fund together with Credit Lyonnais Securities Asia (CLSA)
\nand Philippine businessman John Gokongwei with his financial
\nadviser, Goldman Sachs Group Inc.<\/p>\n
JG Summit Holdings Inc., Gokongwei's flagship company, denied
\non Wednesday it was planning to buy the Astra shareholding.<\/p>\n
Lazard Asia Fund, a unit of Lazard Freres and Co., confirmed
\non Thursday it was preparing to bid for IBRA's Astra stake.<\/p>\n
Lazard Asia denies that the group will include ousted Astra
\nchief executive Rini Soewandi.<\/p>\n
Market talk in Jakarta has linked Rini, who was unseated
\nTuesday at a shareholders meeting called by IBRA, with Lazard and
\nCLSA.<\/p>\n
\"We are interested in Indonesia strictly as an investor,\"
\nPatrick Cheung, chief executive officer of Lazard Asia, was
\nquoted by Dow Jones Newswires as saying.<\/p>\n
Rini is not financially involved in the Lazard bidding group,
\nwhich is keeping an open mind on Astra's future management if it
\nwere to buy IBRA's stake, he said.<\/p>\n
In a letter sent last month to IBRA chairman Cacuk
\nSudarijanto, CLSA said it was advising an investment group that
\nwas able to quickly conduct due diligence on Astra, because of
\nthe \"substantial work that has already been completed\".<\/p>\n
CLSA's emphasis on a fast turnaround in its bid came as a
\nrival consortium selected as preferred bidder found itself at
\nloggerheads with Rini's management team.<\/p>\n
The Gilbert\/Newbridge consortium complained that Astra had
\nblocked its bid by refusing to open its books, a claim denied by
\nRini.<\/p>\n
An executive close to the Newbridge investor group said
\nearlier this week it had yet to decide whether to renew its
\nproposal or submit a new one.<\/p>\n
IBRA has said it will accept bids from interested investors up
\nuntil Feb. 23, when the agency will publish a shortlist of
\nbidders.<\/p>\n
A week after Feb. 23, those on the shortlist will have the
\nopportunity to conduct due diligence on the company, and place
\nfinal bids by March 20.<\/p>\n
IBRA's Cacuk said Monday that five bids have already been
\nfiled for the Astra stake, adding that he expected more. (03\/rid)<\/p>",
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