Aneka Kimia fails to acquire PT Polekao

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)