Astra to float three subsidiaries on local exchanges

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)