Astra's fate not up to us: Management

Astra's fate not up to us: Management

JAKARTA (JP): The management of Astra International, currently
caught up in a takeover battle, said yesterday the future of the
country's largest automotive company lies in the hand of its
shareholders.

Teddy P. Rachmat, the president of the widely diversified
business group, told journalists during the announcement of the
company's January-September financial reports that: "It is up to
the shareholders to decide and we are ready to face any change."

Rachmat gave no hint about the planned takeover of the
company's majority stake by PT Nusantara Ampera Bakti (Nusamba)
-- a business group controlled by three foundations headed by
President Soeharto.

Rachmat said that like other people, the current management
was in the dark about Nusamba's takeover plans.

Mohammad (Bob) Hasan, a commissioner of Nusamba, said recently
that the company had won approval to buy around 10 percent of
Astra's shares from state-owned companies -- at a premium.

The recent news over the plan of Soeharto's foundations to
acquire Astra shares broke in the middle of a similar buying
spree of Astra's shares by tobacco tycoon Putera Sampoerna.

Putera, the chairman of HM Sampoerna, one of the country's
largest clove cigarette manufacturers, later confirmed that he
had bought 9.81 percent of Astra's shares. The cigarette
producer's wholly-owned Dutch subsidiary bought another 2.85
percent, making Putera and his company the largest shareholders
in the automotive company.

Business analysts speculated that the entry of Nusamba into
Astra is part of Soeharto's foundations' strategy to support the
development of the national car.

Soeharto's youngest son Hutomo (Tommy) Mandala Putra, whose
company has been licensed to develop the national car, however,
denied last week he had any intention to use Astra's assembling
facilities to support the manufacture of the national car, the
Timor.

Investors, however, reacted positively to the takeover plans
despite business analysts' reservations. Astra's share prices
continued increasing on the back of the takeover moves.

The share prices gained Rp 250 yesterday in active
transactions to close at Rp 4,250, which indicated a 80 percent
increase of over Rp 2,400 in early September.

Profit

Yesterday, Astra International reported a 25.6 percent
increase in its net profit to Rp 340.85 billion in the first nine
months of this year.

Financial Director Rini M.S. Soewandi said here yesterday that
the profit increase resulted from the high growth in the
improvement of non-automotive business activities -- a
significant increase in the sales of motorcycles as well as the
improvement of the financial performances of its financial, heavy
industry and agro-business divisions.

Rini said that sales of automobiles declined to 115,542 units
in the January-September period from 153.709 units in the same
period of last year.

"We hope automobile sales will reach 168,000 units for the
whole of 1996," she said, adding that the automobile market,
which sharply dropped earlier this year, has shown an
improvement.

He said that Astra's net profits are expected to further
increase to Rp 450 billion in 1996, with the improvement of the
markets for both automobiles and motorcycles.

In April, Astra lowered its net profit projection for 1996 to
Rp 350 billion on the planned entry of Timor cars in the market.

PT Pemeringkat Efek Indonesia (Pefindo), the country's only
rating company, yesterday assigned a low-risk A minus on Astra's
long-term debts, the best rating assigned to private companies
so far. (hen)

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