Wed, 22 Nov 2000

Bhakti acquires Salim Oleochemicals for $131m

JAKARTA (JP): PT Holdiko Perkasa has sold its stake in the Salim Oleochemicals Group to a local consortium led by PT Bhakti Investama Group for about US$131 million, the Indonesian Bank Restructuring Agency (IBRA) announced here on Tuesday.

Dasa Susantio, the director of the agency's asset management division said that by the closing of bidding, IBRA had received two very competitive bids from local investors.

"Consequently, a third round of bidding had to be conducted and we eventually chose the bid that had less prerequisites attached to the offer," Dasa said.

Holdiko was established last year to manage the assets of more than 100 companies surrendered by the Salim Group to IBRA as part of the business group's debt settlement with the agency.

The Salim Oleochemicals Group consists of seven operating and marketing companies, which produce and sell natural fatty alcohol, the main raw material for the production of detergents and personal toiletries.

According to IBRA, two companies within the group, PT Batamas Megah and PT Prima Inti Perkasa, are the only producers of natural fatty alcohol in the country, and have a combined production capacity of 90,000 metric tons of fatty alcohol per year

Salim Oleochemicals also owns assets in four other countries.

"We are very pleased to have won this sale, and believe that we have made a good business decision," Bhakti president Harry Tanoesoedibyo said.

Holdiko director Scott Coffey said the sale of the stake would contribute nearly 25 percent of Holdiko's target budget for this year.(hen)