Aneka Kimia fails to acquire PT Polekao

JAKARTA (JP): Publicly-listed chemical distributor PT Aneka Kimia Raya yesterday received the endorsement of its shareholders to cancel a planned acquisition worth Rp 19 billion (US$ 8.1 million).

Earlier this year, the company announced it proposed to acquire minority stakes in two chemical producers -- PT Polekao Indonesia Chemicals and PT Arjuna Utama Kimia -- in efforts to strengthen its position in the chemical industry.

"We have agreed on the value for the planned acquisition but failed to make a joint venture agreement with Polekao. And we don't think it's good for us to realize the transaction without such an agreement," Aneka Kimia's president, Haryanto Adikoesoemo, told a press conference yesterday after an extraordinary meeting of the company's shareholders.

Polekao is a joint venture between Kao Corporation of Japan and Indonesian businessman A.A. Baramuli. It produces specialty chemicals for the textile industry and for the production of several consumer goods.

Haryanto said that there would be a conflict of interest in such a transaction because Kao Corporation found out that Aneka Kimia was then also planning to set up another joint venture with Dai-Chi Kogyo Seiyaku of Japan, in which it would take 49 percent of the proposed $1.8 million equity in the venture.

"The joint venture has now been established under the name of PT Dhai-Chi Kimia Raya with total investments of approximately $7.5 million," Haryanto said.

Another plan which has been realized is the acquisition of a 22.8 percent stake worth Rp 9 billion in PT Arjuna Utama Kimia.

Haryanto said that Arjuna is a producer of glue, which is widely used in the production of plywood.

At yesterday's press conference, Haryanto also said that Aneka Kimia's total sales last year increased to Rp 473.7 billion from Rp 369.3 billion in 1994, while its net profits rose to Rp 27 billion from Rp 17 billion.

He said the rise in sales was supported by an increase in sales volume of major chemical products, including caustic soda solution, soda ash, sodium sulfate, sorbitol and DOP.

"This year, we expect to book Rp 560 billion in net sales and Rp 32.6 billion in net profits," Haryanto said.

For the first quarter of this year, the company booked Rp 110 billion in sales revenues and Rp 5.7 billion in net profits.

At yesterday's meeting, the shareholders also approved the management's proposal to pay final dividends of Rp 70 per share for the 1995 financial year, totaling Rp 12.4 billion or 44 percent of the company's net profits. (alo)