Texmaco Group seeks listing on Nasdaq<\/p>\n
JAKARTA (JP): The widely diversified Texmaco Group said
\nTuesday it would list some of its subsidiaries on the New York-
\nbased over-the-counter stock market Nasdaq to raise funds for
\npayment of the group's overseas debts worth about US$1.4 billion.<\/p>\n
The group's Chairman Marimutu Sinivasan said here on Tuesday
\nthe subsidiaries which would be listed on Nasdaq would include PT
\nPolysindo Eka Perkasa and PT Texmaco Perkasa Engineering, which
\nare listed on the Jakarta Stock Exchange.<\/p>\n
Polysindo is the country's largest integrated textile industry
\nwhile Texmaco Perkasa is in the machinery and engineering
\nindustry.<\/p>\n
\"The listing (of the group companies' shares) on Nasdaq will
\nbe made after we have finished our debt rescheduling
\nnegotiations, which are scheduled for conclusion in July. So we
\nhope the listing can be realized by the end of this year,\"
\nSinivasan said in a news conference.<\/p>\n
He said the Nasdaq listing would also be made to protect the
\nbusiness group's subsidiaries from being taken over by other
\ncompanies at low prices.<\/p>\n
Many foreign companies were now targeting to buy debt-laden
\nbut promising companies at cheap prices here, he said, adding
\nthat prices of most shares listed on the local stock exchange
\nhave been undervalued due to the lack of interest from buyers.<\/p>\n
By listing on Nasdaq, the companies' shares would be more
\nliquid and the prices more realistic.<\/p>\n
Sinivasan said the overseas listing would be one possible way
\nout in coping with the business group's mounting overseas debts.<\/p>\n
Polysindo announced earlier that it was in the final stages of
\npreparing a comprehensive restructuring proposal for its $1.4
\nbillion debt, with a final agreement expected by August.<\/p>\n
He said that the group would use the debt equity swap for
\ncoping with its domestic debts.<\/p>\n
However, Sinivasan refused to reveal the amount of Texmaco's
\nforeign and domestic debts.<\/p>\n
Several of Texmaco's subsidiaries, including PT Texmaco
\nPerkasa Engineering and PT Polysindo Eka Perkasa are among the
\n164 biggest debtors at Bank Negara Indonesia.<\/p>\n
Sinivasan said Texmaco also planned to establish five or six
\ngarment factories in the country within the next two years to
\nboost its garment exports.<\/p>\n
He said that Texmaco expects to increase its garment export to
\n$30 million per month in the next two years from the current $12
\nmillion per month.<\/p>\n
Sinivasan said Texmaco currently exports 60 percent of its
\ntextile and textile-related products to compensate the sluggish
\ndomestic demand.<\/p>\n
Before the economic crisis hit the country, Texmaco exported
\nonly 35 percent of its products.<\/p>\n
He said Texmaco has also expanded its business to Tunisia,
\nNorthern Africa and Eastern Europe.<\/p>\n
\"With the increase in production capacity, both in domestic
\nand overseas plants, we expect our textile and garment exports
\ncould reach $500 million this year,\" Sinivasan said, adding that
\nthe figure was expected to reach $750 million within the next
\nthree years.<\/p>\n
He said despite the downturn in the international prices of
\ntextile and textile-related products, the business still promised
\nto consider the huge size of the textile market. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/texmaco-group-seeks-listing-on-nasdaq-1447893297",
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