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)