Bimantara focuses on telecom, media

Abdul Khalik, The Jakarta Post, Jakarta

Publicly listed PT Bimantara Citra announced on Tuesday it would inject US$15 million into its new telecommunications subsidiary and acquire television station TPI as part of its strategy of focusing on these two core businesses.

Bimantara president Harry Tanoesoedibjo said shareholders had agreed to provide up to $15 million for Mobile-8, the company's new cellular subsidiary, in order to finance an additional 500,000 lines nationwide, in addition to the current 1.9 lines.

"We invested Rp 811 billion to set up Mobile-8 in December 2003. Another $15 million will expand the networks of Mobile-8 by mid-year to cover areas outside Java," said Harry.

The company has a 72 percent stake in the CDMA-based cellular operator. It teamed up with U.S.-based telecommunications company Qualcom Inc. and South Korea's KTF Co. to establish the subsidiary, which provides cellular services under the brand name Fren.

He said the funds would be raised by selling shares via a rights issue and from internal financing over the next three to five months. He added that the company had appointed Merrill Lynch, CLSA and Mandiri as financial advisers for the issue.

He also said that Bimantara had sold several of its subsidiaries outside its core businesses, such as the transportation and logistics operator PT Jasa Angkasa.

Bimantara's purchase of TPI follows its move at the beginning of the year to increase its share-holding in RCTI to 100 percent.

It has also consolidated Global TV, in which it has a controlling interest, and has sold its entire share-holding in Metro TV because it could not increase its share in that network.

Harry added that the company saw a net profit of Rp 241.8 billion in 2003, down from Rp 347.8 billion in 2002.