Soros to acquire Bentoel through third party<\/p>\n
JAKARTA (JP): PT Bhakti Investama, a partner of Quantum Fund
\nbelonging to U.S. financier George Soros, plans to acquire a
\nmajority stake in the ailing cigarette maker PT Bentoel Prima
\nthrough trading firm PT Transindo Multi Prima.<\/p>\n
Bhakti Investama president Bambang Harry Iswanto Tanoesoedibjo
\nsaid Transindo, currently subdistributor for Bentoel cigarettes
\nin Jakarta and parts of West Java, would issue rights shares to
\nfinance the acquisition of a 75 percent stake in Bentoel.<\/p>\n
Bhakti Investama would then act as the standby buyer for
\nTransindo's rights shares.<\/p>\n
\"The rights issue will raise Rp 349 billion (US$47 million) in
\nfresh funds, of which about 90 percent will be used to acquire
\nthe 75 percent stake in Bentoel,\" Bambang said during a press
\nconference after Transindo's extraordinary shareholders meeting.<\/p>\n
Transindo shareholders approved the planned acquisition of
\nBentoel. They also agreed to change Transindo's name into PT
\nBentoel International Investama and appointed Bhakti Investama
\npresident Bambang as its new commissioner.<\/p>\n
Bentoel Prima and its subsidiaries produce cigarettes such as
\nBentoel Mild, Bentoel International and Bentoel Merah.<\/p>\n
Bentoel's sales jumped 65 percent to Rp 1.33 trillion in 1998
\nfrom Rp 805.5 billion in the previous year. Sales continued to
\nrise in the following year with 1999's third quarter sales
\nreaching Rp 1.4 trillion.<\/p>\n
However, responding to questions on whether Bhakti Investama
\nthrough Transindo's right issue would purchase Bentoel on behalf
\nof Soros, Bambang played down that scenario, saying that Bhakti
\nInvestama represented other foreign investors as well.<\/p>\n
Besides Soros' Quantum Fund, Bambang said, Bhakti Investama
\nalso represented Northern Trust.<\/p>\n
\"We don't even have a stake in Transindo,\" he said, adding
\nthat Bhakti Investama, as the standby purchaser, would only
\nacquire Transindo's unsold rights shares.<\/p>\n
Transindo is 60.42 percent owned by PT Amanat Surya Kudus, 5.1
\npercent by PT Rajawali Corporation and 35 percent by the public.<\/p>\n
Transindo chief commissioner Anisa Himawan said the company
\nwould also acquire a 75 percent stake in PT Lestariputra
\nWirasejati, another cigarette producer with brands including Star
\nMild and Prinsip.<\/p>\n
She said the total acquisition value for Bentoel and
\nLestariputra was about Rp 350 billion, 90 percent of which was
\nallocated for Bentoel's shares.<\/p>\n
\"Lestari's 75 percent stake would cost us only Rp 35 billion,\"
\nshe said.<\/p>\n
Anisa said that since the rights issue only intended to raise
\nRp 349 billion in capital, the remaining Rp 1 billion would come
\nfrom the company's own operational funds.<\/p>\n
She said the acquisition of both companies and Transindo's new
\nname would not alter its core businesses, which were general
\ntrading, distribution and investment.<\/p>\n
She said, however, that Transindo planned to develop its core
\nbusiness into consumer products.<\/p>\n
The acquisitions, Anisa said, were aimed at strengthening
\nTransindo's position in the cigarette industry.<\/p>\n
She added that Bentoel and Lestari also needed fresh capital
\nto expand their businesses.<\/p>\n
After the acquisition, Bentoel would be 75 percent owned by
\nTransindo, 16.88 percent by PT Rajawali Corporation and 7.5
\npercent by PT Perusahaan Rokok Tjap Bentoel.<\/p>\n
Meanwhile, after the acquisition Lestari would be 75 percent
\nowned by Transindo, and 25 percent by individual investors. (03)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/soros-to-acquire-bentoel-through-third-party-1447893297",
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"sponsor": "Okusi Associates",
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