Bimantara to sell its affiliate firms

Bimantara to sell its affiliate firms

JAKARTA (Dow Jones): Indonesian diversified holding company PT
Bimantara Citra announced Monday that it plans to sell 46.57
million shares, or a 13.5 percent stake, in its affiliate
hotelier PT Plaza Indonesia.

Bimantara said it will also sell 5,300 shares, or its entire
15.5 percent stake in its affiliate baby food producer PT Nestle
Indonesia and its entire 90 percent stake in automotive unit
Bimantara Cakra Nusa.

It will seek shareholders approval of the plan during a
meeting August 15.

Bimantara currently holds a 27.55 percent stake in Plaza
Indonesia.

The company, which is controlled by former President
Soeharto's son Bambang Trihatmodjo, said the proceeds from the
share sale in the three companies will be used repay its debt to
the Indonesian Bank Restructuring Agency.

Bimantara said the sale is also aimed at streamlining its
businesses.

It said according to Sudjendro Soesanto Consulting, an
independent appraisal, shares of Plaza Indonesia should be priced
at Rp 3,000 apiece.

PT Ernst & Young Consulting said shares of Nestle Indonesia
should be priced at Rp 114.2 million each.

According to public accountant Djoko Sutardjo, shares of
Bimantara Cakra Nusa should be priced at Rp 154,898 a share.

Shares in Bimantara Monday ended unchanged at Rp 1,215.