Bhakti aims to raise stake in Bimantara and Agis

Bhakti aims to raise stake in Bimantara and Agis

Rendi A. Witular, The Jakarta Post, Jakarta

In its efforts to gain greater control and profit from its
subsidiaries, publicly listed investment firm PT Bhakti Investama
aims to become the controlling shareholder in several of its
high-profile subsidiaries next year.

Bhakti deputy chief commissioner Hary Iswanto Tanoesoedibjo
said the company would allocate as much as Rp 450 billion (some
US$50 million) to take control of media and telecommunications
conglomerate PT Bimantara Citra and consumer goods company PT
Artha Graha Investama Sentral (Agis).

"We are planning to become a controlling shareholder in
Bimantara and Agis step by step starting next year. We expect to
have at least 50.1 percent ownership in the two publicly listed
companies," said Hary in a press conference on Tuesday.

At present, Bhakti owns 40.74 percent shares in Agis and 39.61
percent shares in Bimantara, a company founded by Bambang
Trihatmodjo, the second son of the country's former president
Soeharto.

With a controlling stake in the two companies, Bhakti will be
able to consolidate their financial statements into its account,
thus improving Bhakti's asset value, income and profit.

If consolidated, the company's operational income is expected
to reach at least Rp 2.4 trillion next year.

PT Media Nusantara Citra (MNC) is 100 percent owned by
Bimantara. The company currently houses television stations
Rajawali Citra Televisi Indonesia (RCTI) and Global TV, and will
later house another television station, TPI.

Bimantara plans to sell as much as 25 percent of its stake in
MNC to the public via an initial public offering, possibly next
year or in 2006, with proceeds from the IPO to be used to expand
the TV stations and to set up a new radio station network and
print media.

In the telecommunications sector, Bimantara has teamed up with
U.S.-based telecommunications company Qualcomm Inc. and South
Korea's KTF Co. in establishing a code division multiple access-
based cellular operator, PT Mobile-8 Telecom, which provides
cellular services under the brand name Fren.

Agis is a producer and distributor of sport shoes, components
and consumer electronics, such as Sony, RCA and digital satellite
decoder Indovision.

Hary, who is also the president director of Bimantara, said
funds to finance the stake purchase in Bimantara and Agis would
be taken from the company's internal funds, proceeds from the
execution of the company's warrants, and the selling of some
investment portfolios.

Aside from having a stake in Bimantara and Agis, Bhakti also
has a 99.9 percent stake in Bhakti Securities, PT Bhakti Asset
Management and PT Bhakti Finance.

Shares of Bhakti, Bimantara and Agis ended unchanged at Rp
280, Rp 2,250 and Rp 100, respectively on the Jakarta Stock
Exchange on Tuesday.

Bimantara shares ended higher by Rp 25 at Rp 2,275 on the
Jakarta Stock Exchange on Friday.