Sampoerna may withdraw Indomarco takeover bid<\/p>\n
JAKARTA (JP): Publicly cigarette listed company PT Hanjaya
\nMandala Sampoerna will withdraw a plan to buy a majority stake in
\nretail operator PT Indomarco Pristama if the Indonesian Bank
\nRestructuring Agency (IBRA) fails to give a response by
\nWednesday, the company's executive said on Monday.<\/p>\n
Sampoerna's finance director Ekadarmajanto said that the
\ndiversified cigarette producer was waiting for a response from
\nIBRA to its proposal to buy up to 51 percent of the retail
\noperator.<\/p>\n
\"But if there is no reply by Nov. 15, it would be better for
\nus to pull out of our proposal and seek other retail companies to
\nacquire,\" he told reporters following a hearing with the House of
\nRepresentatives Commission V on industry and trade affairs.<\/p>\n
The Salim Group transferred its 51 percent ownership in
\nIndomarco last year to IBRA as part of the restructuring of the
\nbusiness group's massive debts to the government.<\/p>\n
Indomarco plans to sell 46.2 million new shares, or a 35
\npercent stake of its enlarged shares, through an initial public
\noffering (IPO) later this month. But IBRA has yet to decide
\nwhether it will sell its 51 percent stake in the company through
\nthe IPO or through a direct placement.<\/p>\n
Sampoerna's Eka said the move to buy Indomarco is in line with
\nthe company's plan to focus more on expanding its retail business
\nnext year.<\/p>\n
Sampoerna currently has a controlling stake in listed retailer
\nPT Alfa Retailindo.<\/p>\n
Indomarco was founded in 1988 by the Salim Group and Indomarco
\nPerdana, with ownership of 51 percent and 49 percent
\nrespectively, and operates 449 outlets in Jakarta, Tangerang,
\nBandung and Surabaya. Of these, 335 are managed by Indomarco
\nwhile the other 114 are franchise operations.<\/p>\n
Indomart's sales reached Rp 490 billion (US$57.6 million) in
\nthe first six months of 2000, the company's executive said
\nrecently. (hen\/tnt)<\/p>",
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