Bidders for 40% stake in Astra announced

Bidders for 40% stake in Astra announced

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
named on Wednesday three consortia of bidders qualified to buy a
40 percent stake in the country's largest automaker Astra
International.

The three consortia are Singaporean auto distributor Cycle &
Carriage (C&C) Limited Consortium with partners Batavia
Investment Management and JP Morgan International Capital;
American consortium comprising Gilbert Global Equity Partners,
Newbridge Asia II, Chase Asia Equity and Saratoga Investama
Sedaya; and Lazard Consortium of France.

The Government of Singapore Investment Corporation (GIC) has
agreed to participate as a co-investor with each of the three
consortia, IBRA said in a statement.

The participation was in line with the role that the
government of Singapore intends to play in helping IBRA sell its
assets as pledged by Prime Minister Goh Chok Tong to President
Abdurrahman Wahid in January, 2000.

"We are greatly encouraged by the enthusiasm of investors.
IBRA is committed to provide equal treatment to all bidders
during the due diligence period and throughout the sale process,"
IBRA chairman Cacuk Sudarjianto said.

Cacuk earlier said IBRA controlled a 45 percent stake in Astra
but in the statement he said the share controlled by the agency
was only 40 percent. The shares were obtained by the agency
through debt-settlement with the previous shareholders of Astra.

Cacuk said IBRA contacted over 60 investors on the Astra sale
and 14 investors in four consortia submitted their written
interest.

Three of the four consortia met the selection criteria made by
IBRA, including preliminary bid price, financial capacity of
bidders, suitability of bidders and others, he said. He did not
mention the fourth failed consortium.

He said the three bidders would be allowed to conduct due
diligence over a three-week period beginning Monday.

The due diligence process will be conducted concurrently by
the bidders and will be comprised of data room review, management
meetings and site visits.

Final bids including submission of definitive transaction
documentation will due within one week after due diligence has
been completed.

"IBRA expects to select and announce the winning bidder and
close the transaction by the end of March, 2000," Cacuk said.

In December, 1999, IBRA chose the Gilbert-Newbridge consortium
as the preferred bidder for the former's stake in the company
with the bid proposal of Rp 3,750 per share (around 50 US cents).

But, it failed to realize the plan following its inability to
conduct a due diligence on the automaker and its failure to pay a
30 percent up-front payment by the deadline.

Astra's previous management led by Rini Soewandi reportedly
obstructed Gilbert-Newbridge's from conducting due diligence in
protest over IBRA's deal.

Lazard Asia Fund, a unit of France's Lazard Freres & Co, later
stepped in the acquisition battle with a price offering of Rp
4,000 per share for the Astra sale.

IBRA is expected to raise Rp 3 trillion from the Astra sale to
meet its target of raising Rp 17 trillion to help finance the
current state budget ending March 31.

Separately, Reuters quoted C&C as saying on Tuesday in
Singapore it was seeking to buy 20 percent of Astra in a deal
likely to be worth over S$400 million (US$234 million).

C&C said it submitted the bid to take a 20 percent stake in PT
Astra on Monday as the single largest investor and lead member in
a four-member consortium bidding to acquire a total interest of
30.4 to 40.6 percent in the Indonesian firm.

C&C's Finance Director, Neville Venter, said C&C would not
want a stake of less than 20 percent in PT Astra, and said a 20
percent stake was worth S$400 million to S$500 million.

Asked how the firm would finance the purchase, Venter said C&C
had low debt to equity gearing and some cash, but would also need
to make bank borrowings.

"On balance, we need to borrow," he said. "We have in excess
of S$100 million cash on hand."

C&C distributes Mercedes Benz, Mitsubishi, Kia and Proton
vehicles in Singapore. (jsk)