APP, Golden Agri in talks with investors

APP, Golden Agri in talks with investors

SINGAPORE (Dow Jones): Indonesia's Asia Food & Properties Ltd. and its unit, Golden Agri-Resources Ltd., said on Monday the two companies are in talks with strategic investors.

Trading in the shares of the two Singapore-listed companies will remain suspended, they said.

The two companies didn't disclose the nature of the talks or the investors, but said the talks are in line with their strategies to work with partners who can add value to their businesses.

Asia Food & Properties and Golden Agri are run by Indonesia's Sinar Mas Group.

There is market speculation Asia Food & Properties' trading suspension could be a prelude to the controlling Widjaja family pledging its 64 percent stake in the company to the Indonesian Bank Restructuring Agency.

Four members of the Widjaja family have signed personal guarantees for 145 percent of loans by another sister company Asia Pulp & Paper Co. owed to Bank International Indonesia, which is now under IBRA's control.

Franky Widjaja is the chairman and chief executive of Asia Food & Properties.

There is also talk that Asia Food & Properties may have sold its remaining units in the Costa Rhu condominium in Singapore, possibly a move to improve liquidity in the immediate term.