Pan Lonsum issues bonds worth $25 million<\/p>\n
JAKARTA (JP): PT Pan London Sumatra Plantation (Pan Lonsum),
\nowned by Andry Pribadi of Napan Group, Ibrahim Risjad of
\nRisjadson Group and Henry Liem, announced yesterday that it has
\nissued mandatory exchangeable bonds worth US$25 million.<\/p>\n
\"Prudential Asset Management Asia Limited (Pama) of the United
\nStates and Suez Asia of France have invested $20 million and $5
\nmillion respectively through the subscription of the bonds due
\n1999,\" president of Pan Lonsum, Ibrahim Risjad, said.<\/p>\n
Ibrahim said that Pan Lonsum's subsidiary -- PT Perusahaan
\nPerkebunan London Sumatra Indonesia (PPLSI) which was acquired
\nfrom Harrisons and Crosfield Holding BV -- will also float its
\nshares in February.<\/p>\n
\"The bonds are exchangeable into PPLSI shares upon its listing
\non the Jakarta Stock Exchange next year,\" said Ibrahim.<\/p>\n
Pan Lonsum acquired PPLSI, which operates a 56,000-hectare
\nplantation in Sumatra, and its marketing arm in Singapore for
\nUS$273 million last year.<\/p>\n
Ibrahim said that the proceeds of the bond issuance and the
\nplanned share public offering will be allocated to partly repay a
\nsubstantial portion of Pan Lonsum's bank borrowing incurred for
\nthe acquisition of PPLSI and further business expansion.<\/p>\n
Pan Lonsum acquired PPLSI, which was set up by Harrisons &
\nCrosfield in 1902, due to the expiry of its plantation operation
\npermit.<\/p>\n
\"We acquired the management of PPLSI, not its assets,\" said
\nIbrahim.<\/p>\n
Pama, the bond buyer, is the Asian investment and merchant
\nbanking arm of the Prudential Insurance Company of the United
\nStates, with its offices in Hong Kong, Singapore, Tokyo, Bangkok,
\nTaipei, Kuala Lumpur and Jakarta.<\/p>\n
Since its establishment here in 1993, Pama has made
\ninvestments in several firms, including PT Siba Surya, PT Supra
\nUsadhatama and PT Bakrie Investindo.<\/p>\n
Suez Asia is a subsidiary of the Suez Group and dedicated to
\ndirect investment in Asia. Suez Group has offices in Singapore
\nand Hong Kong.<\/p>\n
\"PPLSI, which produces rubber, cocoa, tea, coffee and palm
\noil, has established relationships with major customers in Asia,
\nEurope and North America,\" said Pan Losum's director Andry
\nPribadi, who added that over 90 percent of its products are
\nexported.<\/p>\n
Andry said PPLSI also operates 15 crop processing facilities,
\nincluding palm oil mills, sheet rubber and rubber chip factories,
\ncocoa processors and tea and coffee plants.<\/p>\n
President of PPLSI, Geoffrey Brown, said the company is also
\nundertaking an expansion project in Palembang, South Sumatra, to
\ndevelop palm oil and rubber plantations in a total area of 32,000
\nhectares.<\/p>\n
Brown said that the company's net profit last year was
\nrecorded at Rp 39.3 billion ($17.2 million) from its sales
\nrevenues of Rp 141.7 billion.<\/p>\n
Sales are expected to increase to Rp 185 billion and the
\nprofit to Rp 60 billion this year, he said.(kod)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pan-lonsum-issues-bonds-worth-25-million-1447893297",
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