Acquisition approved

Acquisition approved

JAKARTA (JP): Shareholders of PT Kawasan Industri Jababeka (KIJ) approved yesterday a management plan to acquire two other companies and to distribute an interim dividend of Rp 50 (2.18 U.S. cents) per share.

KIJ president Ismail Sofyan told journalists after an extraordinary shareholders' meeting yesterday that the acquisition of PT Indocargomas Persada and PT Greenwood Sejahtera will allow it to expand its 790-hectare industrial estate in Bekasi, West Java, by 230 ha.

"It's a part of our plan to expand our industrial estate by 780 ha. We want to acquire Indocargo and Greenwood because both companies' land is located adjacent to our industrial estate and has been licensed for development," said Ismail.

He said the development of the new areas will need an investment of US$200 million. KIJ will provide only $70 million from its equity, he said, while $20 million will come from retained earnings and the rest from bank loans.

KIJ has selected Inter Pacific Bank and Bank Bira to arrange the loans, he added. (10)