Second bidder shows interest in IBRA's Astra stake<\/p>\n
JAKARTA (JP): A second bidder has emerged for the stake that
\nthe Indonesian Bank Restructuring Agency (IBRA) holds in Astra
\nInternational as the new chief of the agency pushes ahead with
\nhis controversial proposal to replace current Astra management.<\/p>\n
IBRA head Cacuk Sudarijanto told a news conference on
\nWednesday that the agency, as the owner of 40 percent of Astra,
\nwould press for the replacement of the Rini Soewandi-led
\nmanagement because of what he called their uncooperative attitude
\ntowards an IBRA deal with a Newbridge\/Gilbert investor
\nconsortium.<\/p>\n
IBRA last month chose, without an open tender, an American
\ninvestor consortium led by Newbridge Capital and Gilbert Global
\nEquity Partners as the preferred bidder for its 40 percent stake
\nin Astra.<\/p>\n
But the process of the transaction was obstructed by what
\nCacuk considered uncooperative management on the part of the
\npresent Astra management towards Newbridge\/Gilbert.<\/p>\n
The second bidder, supported by a respected blue chip
\nfinancial investor, offers a speedy solution to the current
\ndifficulties in closing the sale, according to Dow Jones
\nNewswires on Wednesday.<\/p>\n
According to a letter sent by Credit Lyonnais Securities
\n(Asia) Ltd. to the head of IBRA, the unnamed investor would pay a
\npremium to IBRA's minimum stated price of Rp 3,750 (US$0.52) per
\nshare for the 40 percent stake in the auto maker.<\/p>\n
The letter, a copy of which was obtained by Dow Jones
\nNewswires, noted the difficulty in pressing ahead with a firm bid
\ngiven IBRA's move to name the U.S. consortium of Newbridge
\nCapital and Gilbert Global Equity Partners as the preferred
\nbidder for the stake in Astra.<\/p>\n
\"The only obstacle to our client making a firm offer and
\nproceeding with a transaction... is the current uncertainty as to
\nthe disposal process,\" Richard Taylor, Credit Lyonnais Securities
\nmanaging director, wrote in the letter.<\/p>\n
According to the CLSA letter, its client isn't purely a
\nfinancial investor, like the Newbridge consortium, \"but would
\ntake an active and cooperative role in driving the company
\nforward in the new millennium.\"<\/p>\n
CLSA also said the transaction process would be fair and
\naccountable.<\/p>\n
\"The eyes of the world are on Indonesia in general and this
\ntransaction in particular and a transparent sale process would
\nsend a clear signal to the international investment community
\nthat... IBRA is an organization people can do business with,\" the
\nletter continued.<\/p>\n
Cacuk said on Wednesday that IBRA was under pressure to meet
\nits target of raising Rp 17 trillion for the state budget and
\nthat the sale of Astra shares was expected to contribute a good
\nportion of the total.<\/p>\n
Advisor to the head of IBRA, Amir Sambodo, expressed his
\nconfidence that the current management of Astra would be replaced
\nat the company's extraordinary shareholders meeting scheduled for
\nFeb. 8.<\/p>\n
\"The current management of Astra will definitely be replaced,\"
\nAmir said.<\/p>\n
He added that the agency had prepared a team to take over the
\nAstra management but he declined to elaborate.<\/p>\n
Transparency<\/p>\n
Astra management has denied charges that it is obstructing
\nIBRA's sale of Astra shares, explaining that it has only asked
\nfor transparency in the transaction and conformity with the laws
\nof the securities market as enforced by the Capital Market
\nSupervisory Agency (Bapepam).<\/p>\n
Astra also rejected the allegations made on Dec. 22 by
\nNewbridge\/Gilbert that management was obstructing the due
\ndiligence it conducted as part of its deal with IBRA.<\/p>\n
Astra executives dismissed the charges, saying the investor
\nconsortium only obtained legal clearance on Dec. 15 from Bapepam
\nto conduct due diligence.<\/p>\n
\"The Indonesian securities watchdog (Bapepam) confirmed IBRA
\nas an insider party (significant shareholder) of Astra only on
\nDec. 15,\" Rini has said.<\/p>\n
She argued that without being an insider party or shareholder
\nwith at least a 20 percent stake, IBRA or Newbridge\/Gilbert is
\nnot allowed under the securities laws to obtain inside and
\nproprietary information from Astra.<\/p>\n
\"As a publicly listed company, we have to play by the rules of
\nBapepam and the securities laws,\" Rini said.<\/p>\n
Astra also questioned the many benefits and advantages given
\nto Newbridge\/Gilbert as a preferred bidder while the investor
\ngroup had not made any upfront payment to support its commitment
\nto buy Astra shares.<\/p>\n
\"The Newbridge consortium's right to match any higher bid may
\ndiscourage other interested investors from making an offer,\" a
\nsecurities analyst has commented.<\/p>\n
Astra has suggested that IBRA sell its take in two phases, the
\nfirst one covering less than 20 percent to avoid the compulsory
\nopen tender.<\/p>\n
The Astra share price is expected to rise after the entry of
\nnew investors, after which IBRA could sell its remaining stake at
\nmuch higher prices and thereby gain more revenue.<\/p>\n
But IBRA seems under tremendous pressure to meet its revenue
\ntarget suggesting its Astra stake is the only jewel among the Rp
\n600 trillion of assets (equities and bad debts) the agency
\ncurrently controls.<\/p>\n
The agreement between IBRA and Newbridge\/Gilbert stipulates
\nthat the investor group will pay only Rp 3,000 for Astra shares,
\nand that they can buy less than 30 percent. The price will rise
\nto between Rp 3,750 and Rp 3,825 if the acquisition reaches more
\nthan 30 percent.<\/p>\n
An analyst here argued that the clause is much in favor of the
\nAmerican investor consortium as they can opt for buying less than
\n30 percent, having to pay only Rp 3,000 per share versus the
\ncurrent market valuation of over Rp 3,800 per share.<\/p>\n
Stranger still, Newbridge\/Gilbert are entitled to a
\ncompensation of up to $1.5 million if the planned transaction
\nfails to be closed. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/second-bidder-shows-interest-in-ibras-astra-stake-1447893297",
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"sponsor": "Okusi Associates",
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