Astra asks Daihatsu to lift stake

Astra asks Daihatsu to lift stake

BALI: P.T. Astra International, the largest automaker in Indonesia, is asking Daihatsu Motor Co. to raise its stake in their local joint venture, the Nihon Keizai Shimbun reported in its Thursday evening edition, citing sources close to the matter.

Astra appears to be asking for more funds and personnel from Daihatsu in return for ceding management control to the Japanese partner. The venture is currently 50 percent owned by Astra, 40 percent by Daihatsu and 10 percent by Nichimen Corp.

Although the details of the request have not been disclosed, Astra is known to be in talks to raise the Japanese partners' combined stake to 65 percent-75 percent. It will likely raise capital through a third-party allocation of shares mainly to Daihatsu, but it is not clear how many shares Nichimen will buy.

Astra plans to specialize in domestic sales and withdraw from development and production at the joint venture, the financial daily reported. -- Dow Jones