Officials have mixed reactions to Salim's plan<\/p>\n
JAKARTA (JP): Officials gave mixed reactions yesterday to the
\nSalim Group's plan to sell giant PT Indofood Sukses Makmur to
\ntiny QAF Ltd incorporated in Singapore.<\/p>\n
The Investment Coordinating Board's deputy chairman, Sugihono
\nKadarisman, said Salim's internal acquisition plan was legal and
\ncould even improve its international reputation.<\/p>\n
\"That's legal, just like state-owned firms selling their
\nshares overseas,\" Sugihono announced after attending a workshop
\nfor provincial coordinating investment board officials.<\/p>\n
\"In this globalization era, Indonesian companies should
\nimprove their competitiveness. If there is an Indonesian firm
\nselling its shares abroad, ... we must see it from our national
\ninterests,\" he added.<\/p>\n
He contended that a company selling shares overseas would have
\nmore standing in the eyes of its business partners.<\/p>\n
Sharing Sugihono's position, Minister of Cooperatives and
\nSmall Enterprises Subiakto Tjakrawerdaya said he saw no problem
\nwith the planned internal acquisition.<\/p>\n
He said Indofood should still maintain its partnership with
\nlocal small firms and cooperatives.<\/p>\n
\"The case will not change Indofood's partnership program,
\nespecially with village cooperative units which supply it with
\nagricultural commodities, even though its holding company may
\nmove to Singapore,\" Subiakto said.<\/p>\n
But Coordinating Minister for Production and Distribution
\nHartarto declined to comment on Salim's planned restructuring.<\/p>\n
\"I will comment on it at the right time because it is a
\nsensitive issue ... we need a coordination (meeting) to decide
\nwhat is best,\" Hartarto said.<\/p>\n
Salim group's PT Indocement Tunggal Prakarsa has proposed a
\nspin-off and sale of its 50.1 percent share in Indofood.<\/p>\n
Under the proposed spin-off, Indocement would give most of its
\nIndofood shares to existing shareholders as a special dividend
\nand sell the remaining shares to the Sampoerna family, which
\ncurrently has a 5.63 percent stake in the food giant.<\/p>\n
After that, QAF would buy the Salim Group's 45 percent stake
\nin Indofood through PT Marga, in addition to the Indofood stake
\nit would buy directly from the Sampoerna family.<\/p>\n
This would give the Singaporean company a 50.1 percent stake
\nin Indofood. QAF, 70 percent owned by the Salim Group, would
\nissue right shares to fund the complicated acquisition.<\/p>\n
Indocement president Sudwikatmono said yesterday that the
\nplanned sale of Indofood to QAF did not represent capital flight
\nbut capital flow.<\/p>\n
\"The funds will be 'parked' only temporary there. That's
\nnormal in business,\" Sudwikatmono said after attending a
\nChildren's Day celebration here.<\/p>\n
He said Indofood would benefit from the planned restructuring
\nas it would easily market its products to Singapore and other
\nAsian countries.<\/p>\n
Both Indocement and Indofood are listed on Jakarta and
\nSurabaya stock markets, while QAF is listed on the Singapore
\nStock Exchange. (08\/rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/officials-have-mixed-reactions-to-salims-plan-1447893297",
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