Malaysian group buys 60% of Multidana<\/p>\n
JAKARTA (JP): Arab Malaysian Securities Holding Sdn. Bhd. of
\nMalaysia has taken over a 60 percent stake in PT Multidana
\nSekurindo, a member of the Jakarta Stock Exchange, through an
\ninjection of Rp 6.6 billion (US$3 million) in fresh funds.<\/p>\n
Multidana's president, Jimmy Hidayat, said here yesterday that
\nthe funds injected by the Malaysian company would be used to
\nstrengthen his company's financial structure.<\/p>\n
He said in addition to the fresh capital injection, Arab
\nMalaysian Securities, a member of the Arab Malaysian Banking
\nGroup, would also provide capital market expertise to Multidana.<\/p>\n
The takeover deal signed last week makes the Arab Malaysian
\nSecurities Holding the first Malaysian company to operate in the
\nIndonesian capital market.<\/p>\n
Multidana, which is also a member of the parallel or over-the-
\ncounter market, was previously wholly owned by Jimmy, who is a
\nformer senior executive of the Dharmala Group.<\/p>\n
Jimmy said that Libra Capital Asia Ltd. of Hong Kong had also
\nacquired another 20 percent stake in Multidana, slashing his
\nstock holding in the company to a mere 20 percent.<\/p>\n
He said that the Hong Kong company acquired the 20 percent
\nstake through the injection of around Rp 2 billion in fresh
\ncapital into Multidana, which at present focuses its activities
\non brokerage activities.<\/p>\n
The financial injection from the Malaysian and Hong Kong
\ncompanies doubled Multidana's capital to Rp 11 billion, from Rp
\n5.5 billion at present, he said.<\/p>\n
Multidana's name will be changed to PT AMMB Securities to
\nrepresent the participation of the Malaysian firm, he said,
\nadding that the new majority shareholder also agreed to retain
\nhis position as Multidana's president.<\/p>\n
"As part of the deal, the Malaysian firm will not change
\nMultidana's management," he said.<\/p>\n
Jimmy explained that the increase in the capital would enable
\nthe company to expand operations into underwriting and corporate
\nadvisory in addition to the existing stock brokerage service.<\/p>\n
The Arab Malaysian Banking (AMB) Group is a major financial
\ninstitution in Malaysia, with total assets and equity
\nrespectively reaching $7.6 billion and $610 million.<\/p>\n
The business group operates in merchant and commercial
\nbanking, multi-financing, stock broking, investment fund
\nmanagement and insurance. (hen)<\/p>",
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