Japanese firms may control Hexindo<\/p>\n
JAKARTA (JP): Hitachi and Itochu Group, both of Japan, have
\npledged to buy all rights shares to be issued by PT Hexindo
\nAdiperkasa in the next few months if other shareholders do not
\ntake the rights, a Hexindo executive said yesterday.<\/p>\n
Company president Rustam Effendi said the two Japanese
\ncompanies -- which currently control a combined total of 25.03
\npercent of the company's shares -- would become majority
\nshareholders if the scenario played out.<\/p>\n
Hitachi would control 40 percent of the company's shares,
\nItochu 22.54 percent, Hexindo Adiperwira 24.31 percent, Hitachi
\nof Singapore 5 percent and the public 8.04 percent.<\/p>\n
Hitachi currently controls 9.73 percent of the company's
\nshares, Itochu 15.39 percent, Hitachi of Singapore 10.48 percent,
\nPT Hexindo Adiperwira 48 percent and the public 16 percent.<\/p>\n
Hexindo plans to issue 42 million new shares in a limited
\npublic offering in the next two months to raise about Rp 42
\nbillion in fresh funds to repay its debts.<\/p>\n
The company, he said, had a total of US$50 million in debts to
\nJapanese principals Hitachi and Itochu, and another $22 million
\nowed in bank loans to overseas banks.<\/p>\n
He said the country's crisis had made the company technically
\nbankrupt because domestic demand for its heavy equipment had
\ndeclined by 70 percent.<\/p>\n
Heavy equipment accounts for 70 percent of the company's
\nsales, with the remainder taken up by coal mining services.<\/p>\n
\"With no construction activities in the country, we expect
\nfurther losses this year.\"<\/p>\n
He said the company recorded a net loss of Rp 29.71 billion
\nlast year due to mounting foreign exchange losses of Rp 31
\nbillion and a provision of Rp 16 billion to its local customers.
\n(aly)<\/p>",
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