Bimantara buys Komselindo and Metrosel
Bimantara buys Komselindo and Metrosel
Dow Jones, Jakarta
Indonesia's PT Bimantara Citra said Thursday it plans to acquire up to a 99.99 percent stake each in cellular companies PT Komunikasi Selular Indonesia, or Komselindo, and PT Metrosel, both of which are partly owned by PT Telekomunikasi Indonesia.
Telkom has a 35 percent stake in Komselindo and a 20.1 percent stake in Metrosel.
The remaining 65 percent stake in Komselindo is owned by PT Elektrindo Nusantara.
Other shareholders of Metrosel include PT Centralindo Pancasakti Cellular, which holds a 37 percent stake, and PT Dwimarga Dwiutama Asia Link B.V., which owns 35 percent. Other smaller companies hold the remaining shares.
Bimantara said it will spend around Rp 304.4 billion (US$32.9 million) for the total acquisition of shares in the two companies.
Bimantara was the former investment vehicle for Bambang Trihatmodjo, the eldest son of former President Soeharto, whom many analysts believe still has a say in the running of the company. It has some small telecommunication holdings, but is mainly known for its media businesses.
Bimantara said it will seek approval from shareholders for the stake purchase during an extraordinary general meeting scheduled to be held Nov. 14.
The plan to acquire the two companies is aimed at developing its telecommunication division, Bimantara said.
It said it will also provide up to $60 million to buy and develop the Code Division Multiple Access cellular technology from a non-affiliated company of international repute.
Bimantara didn't offer details, including the name of the company.
In an effort to develop its telecommunication division, Bimantara said it will set up a subholding telecommunication company, which will be an umbrella for its cellular units.
Komselindo booked net profit of Rp 1.7 trillion for the nine months ended Sept. 30. Bimantara didn't provide year-ago figures, but said Komselindo had total losses of Rp 454.4 billion for 2001.
Metrosel recorded net profit of Rp 5.2 billion in the first eight months of this year. Bimantara didn't provide comparison figures, but said Metrosel had losses of Rp 53.57 billion in full year 2001.
To finance the acquisition of the two cellular companies and to focus its business on the telecommunication and media sectors, Bimantara also plans to sell its non-core logistics and transportation units.
It plans to sell a 55 percent stake in transportation company PT Cardig Air and a 25.48 percent stake in logistics unit PT JAS.
The company expects to raise between $45 million and $60 million from the sale of non-core businesses.
Currently, Bimantara's flagship is PT Rajawali Citra Televisi Indonesia, or RCTI, which became the nation's first private broadcaster in the 1980s. The group also owns a quarter of Metro TV, a new 24-hour local television news station.