Bhuwanatala to buy 51% stake in Duta
Bhuwanatala to buy 51% stake in Duta
JAKARTA (JP): PT Bhuwanatala Indah Permai, a property company
controlled by Bambang Trihatmodjo and Johanes Kotjo, has won its
shareholders' approval to buy a 51 percent stake in PT Duta
Wisata for Rp 82 billion (US$34 million).
Bhuwanatala owns and operates Bandung Indah Plaza building,
the largest shopping mall in Bandung, West Java. Duta Wisata owns
the Megamal Pluit shopping complex in West Jakarta.
"The acquisition of Duta Wisata is just a part of our long
term strategy," Bhuwanatala president Benny Sutrisno said after
an extraordinary shareholders meeting on Monday.
Benny said Bhuwanatala wanted to become a leading developer
and operator of hotels and shopping centers.
He said the Duta Wisata acquisition was priced fairly. An
independent appraisal, according to Benny, valued Duta Wisata's
total shares to be worth between Rp 150 billion and Rp 186
billion.
Benny said the acquisition would be financed by the proceeds
of a ten-for-three rights issue proposed by Bhuwanatala which is
expected to generate around Rp 180 billion.
"The shareholders also endorsed the rights issue proposal in
today's meeting," Benny said.
To sweeten the rights issue, he said, the company would attach
one warrant to every ten new shares.
On the rights issue, Benny said 45.6 percent of the funds
would be allocated for Duta Wisata's acquisition and 34.4 percent
would be used to repay debts and renovate the Bandung Indah Plaza
building.
Summa's assets
After the meeting on Monday, Johaness Kotjo said the Bank
Summa Liquidation Team, formed in 1992 by a consortium of 13 bank
creditors, had agreed to liquidate other Bank Summa's assets
worth Rp 560 billion.
Bank Summa had total assets of Rp 1.6 trillion and total
liabilities of Rp 1.2 trillion when it was liquidated in 1992.
Kotjo confirmed his company PT Bhakti Karya Indah Permai will
provide financial back-up for the liquidation but he would not
explain where the funds would come from.
The collapsed Bank Summa was owned by Edward Suryadjaya, the
son of Astra International's founder William Suryadjaya.
Following Summa's downfall, the central bank (Bank Indonesia)
set up the liquidation team and a consortium to settle Summa's
debts.
The liquidation team received a "personal guarantee" from
William Suryadjaya on 31 property projects including Bandung
Indah Plaza in Bandung, Darmo Satellite residential complex in
Surabaya, East Java, and three buildings in Jakarta: Metropolitan
Medical Center building, Hotel Kemang Garden and Jakarta
International Trade Center.
Bank Summa's remaining debts are estimated at Rp 600 billion
in loans from the 13 banks in the consortium. (alo)