BAT Indonesia, Rothmans prepare a merger plan
BAT Indonesia, Rothmans prepare a merger plan
JAKARTA (JP): Publicly listed cigarette maker PT British
American Tobacco (BAT) Indonesia plans to merge with another
cigarette maker PT Rothmans of Pall Mall Indonesia.
BAT Indonesia president Mark A. Jennings said over the weekend
that the merger processes was expected to be completed in the
next two or three months.
"We are in the process of integration with Rothmans of (Pall
Mall) Indonesia. Rothmans Indonesia has been here for half a
century and they have good brands like Dunhill and Kansas," he
told journalists during a media visit to BAT's factory in
Cirebon, East Java, a copy of the interview session of which was
made available to The Jakarta Post.
He said the merger talks were going smoothly.
"We hope to announce it (the merger plan and processes) at a
shareholders meeting in the next couple of days," he said, adding
that 30 percent of BAT Indonesia's shares were owned by the
public.
Rothmans of Pall Mall Indonesia, a unit of Australia's
Rothmans Holding Limited, is the producer of non-clove
cigarette's under renowned brands, such as Kansas, Dunhill and
Pall Mall.
Rothmans of Pall Mall Indonesia was previously known as PT
Faroka, a cigarette maker established in Malang, East Java, in
1932. The company changed its name to Rothmans of Pall Mall
Indonesia in 1987.
Jennings declined to reveal the new composition of the merged
company, saying the details of the merger should be announced to
the company's shareholders first.
He also said that BAT Indonesia had no intention to acquire
any local clove-blended cigarette factories.
Listed on the Jakarta Stock Exchange, BAT Indonesia is one of
the country's oldest cigarette producers, commencing operations
in 1917.
As of June 30 this year, the company registered unaudited
total assets of Rp 671.35 billion (US$95 million), higher than
the figure recorded in June 30 last year of Rp 454.85 billion.
BAT Indonesia booked an unaudited net income of Rp 59.52
billion in the first half this year, rising from a net loss of Rp
15.25 billion in the same period last year.
It remains one of the market leaders in the regular cigarette
sector with brands including Lucky Strike, Kent, State Express
555, Benson & Hedges, Ardath and Commodore.
It produced a total of 15.4 billion cigarettes as of October.
(cst)