Astra to float three subsidiaries on local exchanges

JAKARTA (JP): The publicly listed PT Astra International plans to list three of its subsidiaries on local stock exchanges to benefit from cheap public funds, the company's finance director said yesterday.

Rini M. Soewandi said that two of the subsidiaries, Bank Universal and car-component producer PT Astra Dian Lestari, would be listed later this year on both the Jakarta and Surabaya stock exchanges.

"The other subsidiary, the agribusiness company PT Astra Agro Niaga, will make its capital market debut early next year," he said on the sidelines of a seminar on the capital market sponsored by ING Barings Securities.

Rini, a speaker at the seminar, did not elaborate on the initial public offering plans for the three companies.

Astra, the country's largest automotive company, has 73 subsidiaries operating a wide rang of businesses.

Bank Universal, which has a presence in the country's major cities, has assets worth Rp 2.7 trillion on Dec. 31, 1995, a 30 percent increase from Rp 2.09 trillion in 1994.

Bank Universal's capital adequacy ratio of 8.8 percent at the end of 1995, was above the minimum 8 percent standard set by the central bank that year.

Astra Agro Niaga is licensed to develop crude oil palm estates of around 300,000 hectares in Sumatra and Kalimantan. But planting has only begun at half of them.

Rini said Astra's shareholders would hold their annual shareholders' meeting on Feb. 20 to approve the company's financial reports for 1996.

The shareholders would also elect members of the company's supervisory board. "The main agenda of the meeting will be to change the personnel on the board of commissioners," she said.

When asked about a management reshuffle, she said: "I don't know about that. There has been no pressure from the shareholders to change the management."

Analysts have speculated that Bob Hasan, who acquired around 10 percent of Astra shares late last year, would change the company's management, which is now led by Theodore P. Rachmat.

On the company's sales performance, Rini said the recent launching of the new Kijang model was expected to increase sales revenue this year.

She said that in January alone the company sold at least 3000 Kijangs and planned to sell 5,000 a month from March this year.

She said that yesterday the company received its 9,600th order for new model Kijangs.

Rini was optimistic that her company's car sales, which dropped 15 percent last year, would recover.

The company's revenue, which totaled Rp 8.5 trillion from January to September last year, is projected to reach Rp 11.8 trillion for the whole of 1996.

The company's net profit was Rp 341 billion for January to September last year and is expected reach Rp 450 billion for the whole year.

She said the company's total revenue was expected to increase to Rp 15.4 trillion for 1997 while net profit was expected to reach Rp 614 billion. (09)