'Plans to list Minamas on track'<\/p>\n
Dow Jones, Kuala Lumpur<\/p>\n
Malaysian plantation group Kumpulan Guthrie Bhd. on Wednesday
\nsaid plans to list its Indonesian unit are on track given the
\nunit's improved pretax profit and production levels.<\/p>\n
Kumpulan Guthrie Chief Executive Abdul Khalid Ibrahim said
\n2002 pretax profit at its Indonesia-based Minamas Plantations,
\nwas up 30 percent over 2001, at 57 million ringgit.<\/p>\n
For the first quarter of this year, the company's pretax
\nprofit was 36 million ringgit, he added. Production also rose at
\nthe Indonesian company in 2002 from a year earlier, he said.<\/p>\n
Guthrie purchased Minamas for US$330 million in November 2000,
\nbut only took over the management in April, 2001.<\/p>\n
\"In 2001, production was much lower, but today, on average, it
\nis exceeding Malaysian production,\" Abdul Khalid said at a press
\nconference following the group's annual shareholders' meeting.<\/p>\n
\"We are now preparing the groundwork for that listing,\" he
\nadded, noting the group will likely decide on the timing in the
\nmiddle of next year.<\/p>\n
He added the timing will depend on the political and economic
\nclimate in the country, and will likely follow the Indonesian
\npresidential election in 2004.<\/p>\n
Previously, the group had targeted mid-2005 for a listing.<\/p>\n
Following a listing, around 30 percent of Minamas Plantations
\nwill be in public hands, he said.<\/p>\n
As part of its 2000 purchase negotiations with the Indonesian
\nBank Restructuring Agency (IBRA) around 10 percent of the company
\nwill be available to Indonesian investors and employees when
\nMinamas is listed, he said.<\/p>\n
Late on Tuesday, the group announced it had refinanced Islamic
\nbonds issued to fund the purchase with a $218 million loan
\nfacility. The refinancing will reduce funding costs by around 2
\npercent per year, the CEO said on Wednesday.<\/p>\n
Guthrie recently announced a sweeping restructuring of its
\nMalaysian plantation operations which will result in taking two
\nunits private and lowering the shareholding of the government-
\nlinked fund Permodalan Nasional Bhd. to just over 60 percent,
\nfrom 73 percent now.<\/p>\n
Abdul Khalid also said shareholders were informed that the
\ngroup remains at the forefront of tissue culture palm oil
\ntechnology. At present, Guthrie has around 1,003 cloned trees and
\nis working on reducing a genetic aberration rate of around 30
\npercent to less than 5 percent.<\/p>\n
On a separate topic, the CEO noted the group's planned Guthrie
\nCorridor Expressway, a 25 kilometer 6-lane highway linking
\nseveral Guthrie housing estates under development close to Kuala
\nLumpur, will be ready soon. Land purchases have delayed the
\nproject, however the civil works are on track, he said.<\/p>\n
\"We hope by the middle of next year or at least the third
\nquarter of next year, the expressway will be ready for public
\nuse,\" Abdul Khalid said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/plans-to-list-minamas-on-track-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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