Bakrie to buy Bumi Modern

Wed, 21 May 1997, 00:00 WIB | Source: JP

JAKARTA (JP): Bakrie Capital Indonesia (BCI), a subsidiary of
Bakrie and Brothers Group, plans to buy 25 percent of property
developer PT Bumi Modern for Rp 27.84 billion (US$11.60 million)
from its major shareholder, PT Asuransi Jiwa Bersama.

Bumi Modern's president, Sri Hoedoyo Sontokusumo, said the
entry of BCI was expected to strengthen Bumi Modern's business
performance.

Sri Hoedoyo said Bumi Modern, which owns the Hyatt Regency
hotel in Surabaya and several housing projects, has reportedly
suffered financial problems in the hotel business.

Bumi Modern needed fresh funds to improve its finances, Sri
Hoedoyo said. "We need a strong partner with a strong financial
source," Bisnis Indonesia quoted Sri Hoedoyo as saying. (09)

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