CP Prima to acquire in Bratasena

CP Prima to acquire in Bratasena

JAKARTA (JP): PT Central Proteinaprima (CP Prima), a publicly-
listed producer of day-old chicks and shrimp feed, is to acquire
a 48-percent stake in PT Centralpertiwi Bratasena for Rp 74.9
billion (US$31.8 million).

CP Prima's minority shareholders yesterday gave their approval
to the acquisition.

"The shares to be acquired, totaling 45 million, are currently
owned by PT Charoen Pokphand Indonesia, Everwell Developments
Ltd. and Charoen Pokphand Group Co. Ltd," a director of the
company, Johannes Hadi, said after an extraordinary shareholders
meeting.

CP Prima owns a 53 percent stake in Charoen Pokphand.

Hadi said that the proposed acquisition was recommended by a
Hong Kong-based consultant, CIBA.

Bratasena's share price, according to CIBA's valuation, varies
from Rp 1,175 to Rp 3,300.

"We will buy at a level of Rp 1,800 per share," he said.

He said the acquisition will be 35 percent financed by the
proceeds of a planned rights issue and 65 percent by bank loans.

CP Prima, according to Hadi, will issue new shares through a
limited offering, in which every 20 old shares are eligible to
buy one new share. The rights issue, however, is still subject to
minority shareholders' approval.

Another director, Fransiscus Affandi, who is also a director
of Charoen Pokhand, said that the acquisition is aimed at helping
CP Prima focus its business on shrimp feeds and day-old chick
production and at the same time allowing Charoen to focus on the
agribusiness sector.

"We are expecting to see a significant growth of shrimp
exports. Therefore, we have to strengthen our position in this
sector," Hadi said.

"We expect that shrimp sales, which currently account for 20
percent of our total sales, to increase to about 50 percent after
the acquisition," Hadi said.

He also said that CP Prima's net sales increased to Rp 1.3
trillion last year from Rp 1 trillion in the previous year, while
its net profits declined slightly to Rp 38 billion from Rp 39
billion.

The relatively flat growth of the sales and profits was due
mainly to a sharp drop in day-old-chick selling prices during the
fourth quarter of last year.

Day-old-chick prices declined from an average of Rp 800 per
head in the first eight months to Rp 300 last September because
of an over-supply situation.

Currently, the prices are about Rp 500 per head.

"By the acquisition, we expect our profits to grow by about 15
percent to 20 percent this year," Hadi added.

Commenting on Charoen's performance, Affandi said that the
company's net sales reached Rp 977 billion last year, increasing
by 32 percent over the previous year.

Its net profits rose from Rp 43 billion in 1994 to Rp 52
billion last year. (alo)