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.