Cahaya Kalbar to acquire PT Mintawi for Rp 62b

JAKARTA (JP): Publicly listed cocoa and edible oil producer PT Cahaya Kalbar will take over PT Mintawi, another edible oil producer, as part of its expansion program.

Corporate secretary Robertus Sampara Lie said here Saturday that funds of around Rp 62 billion (US$25.83 million) would be needed for the takeover of PT Mintawi, which produces illipe oil, cooking oils, palm kernel oil and coconut oil.

He said 95 percent of the funding would be financed by bank loans and the remainder from the company's equity. "We are still processing the loan syndication," he said, adding that the names of the banks will be announced later.

"Shareholders are expected to approve the acquisition during their annual meeting on June 20," he said.

In 1996, PT Mintawi produced 2,975 tons of illipe oil worth Rp 18.645 billion, 6,750 tons of cooking oil worth Rp 8.78 billion, 2,400 tons of palm kernel oil worth Rp 4.03 billion, 2,250 tons of sterine worth Rp 2.12 billion, 960 tons of palm kernel sterine worth Rp 855 million and 600 tons of coconut oil worth Rp 855 million.

"The acquisition is expected to boost the production and performance of Cahaya Kalbar," Robertus said.

Marketing

He said PT Mintawi marketed 10 percent of its products to PT Cahaya Kalbar, with the remaining 90 percent sold overseas.

"Business cooperation has long been established between the two companies," he said.

He said PT Cahaya Kalbar, which posted net sales of Rp 100.11 billion in 1996, recorded a net profit of Rp 17.27 billion last year.

The acquisition was expected to increase the firm's net sales to Rp 157 billion in 1997 and Rp 221 billion in 1998, he said.

"Net profit is projected to surge to Rp 28 billion in 1997 and Rp 42 billion in 1998," he said.

He said the firm's unaudited net sales in the first quarter of this year totaled Rp 32 billion, with net profit reaching Rp 6 billion.

"With such first quarter results, Cahaya Kalbar is confident of achieving its growth targets in 1997," he said.

The firm also plans to set up a speciality fat plant at the Jababeka industrial estate in Bekasi, West Java with a total investment of Rp 60 billion.

The plant would cover an area of around 1.2 hectares, with construction expected to start in August this year and be completed by 1998. Total production capacity is projected at around 22,000 tons of specialty fats per annum.

"The new plant is expected to contribute to the firm's earnings beginning in 1999," he said. (09)