Bimantara to divest firms

Bimantara to divest firms

M. Taufiqurrahman, The Jakarta Post, Jakarta

During an extraordinary shareholders meeting, PT Bimantara Citra Tbk. agreed on Tuesday to sell all the company's shares in insurance company PT Citra International Underwriters (CIU) and financing company PT Citra International Finance and Investment Corporation (CIFIC).

Bimantara will sell its 82 percent shares in the form of a portfolio investment in CIU worth Rp 21.9 billion (US$2.4 million) and its 95 percent shares in CIFIC worth Rp 24.3 billion to PT Bhakti Capital Indonesia Tbk.

Director and corporate secretary of Bimantara Citra Edwin Kawilarang said the sale of the companies was not because of poor performances.

"We simply don't want to engage in the retail financing business. It is not our domain anymore," he told reporters after the meeting.

Edwin denied allegations that the portfolio investments were drawn up with the condition that they were only to be divested when deemed appropriate. He also played down the possibility that all portfolio investments belonging to Bimantara Citra would be dissolved.

During the meeting, the shareholders also approved the distribution of Rp 26 per share in dividends for the financial year 2002.

In 2002, Bimantara Citra made a net profit of Rp 347.8 billion -- a 1.1 percent increase from Rp 344 billion in 2001.

Of the net income in 2002, media and broadcasting businesses contributed Rp 96 billion, the highest increase in income at 306 percent, dwarfing a Rp 24 billion net income in 2001. The increase was mainly due to advertising revenue from television station RCTI.