Bhakti to raise stake in Bimantara, 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.