SMART to divest tuna business shares<\/p>\n
JAKARTA (JP): PT SMART Corporation of the Sinar Mas Group, a
\nmanufacturer of crude palm oil-based products, announced
\nyesterday it will divest its shares in another loss-making
\nsubsidiary in a bid to boost its earnings growth.<\/p>\n
The company said in a statement that earlier this year it sold
\nits interest in two subsidiaries, PT Sinar Meadow International
\nIndonesia and PT Smartindo Bluebird Snacks, for Rp 2.1 billion
\n(US$891,719) and Rp 1 billion respectively.<\/p>\n
A SMART executive, Tan Siauw Liang, said that the management
\ndecided to take the action because the two companies posted
\ncombined losses of Rp 10 billion last year.<\/p>\n
Smartindo and Sinar Meadow were joint ventures with Goldman
\nFielder of Australia in a business producing margarine.<\/p>\n
Liang said that another subsidiary to be divested is a joint
\ntuna canning venture, PT Sinar Mas Pure Food International, which
\nis expected to suffer losses of Rp 2 billion last year.<\/p>\n
The tuna canning company is partly owned by Ayala Group from
\nthe Philippines.<\/p>\n
He said that the divestment will allow the company to
\nconcentrate on its core business as a producer of palm oil-based
\nproducts.<\/p>\n
Liang said that SMART's shareholders endorsed a proposal on
\nthe payments of final dividends of Rp 38 per share, totaling Rp
\n7.9 billion.<\/p>\n
SMART's net profits dropped sharply from Rp 40 billion in 1994
\nto Rp 27 billion last year although its net sales rose 37 percent
\nto Rp 524 billion last year.<\/p>\n
Liang also said that SMART's net profits in the first quarter
\nof this year were Rp 10 billion, slightly down from Rp 11 billion
\nin the same period of last year.<\/p>\n
He cited weakening crude palm oil prices as the main reason
\nfor the plummeting profit. (alo)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/smart-to-divest-tuna-business-shares-1447893297",
"image": ""
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