Diah family to sell all shares in Hotel Prapatan

Diah family to sell all shares in Hotel Prapatan

JAKARTA (JP): The president of the publicly listed PT Hotel
Prapatan, A.T. Nurman Diah, will resign and sell all his family's
shares in the company.

Nurman will tender his resignation at the company's
extraordinary shareholders meeting Thursday, ending the Diah
family's control of the company they founded in 1969.

In statement made available to The Jakarta Post yesterday, he
said he would recommend shareholders appoint Hashim
Djojohadikusumo, the president of Semen Cibinong and several
financial companies, as his replacement.

"The family has decided to relinquish its remaining interest
in the company. I will be handing over a company that is good
shape with a substantial cash balance, low debt and brand new
properties with very strong name brands in their respective
markets." Nurman said.

But Nurman did not say why he was resigning and selling his
family's stake in the company which owns Hotel Aryaduta Jakarta,
Hotel Aryaduta Pekanbaru and the Shima Restaurants in Jakarta.

He did not say how much of the company his family owned but
according to the Indonesian Capital Market Directory 1996, the
Diah family owns 15.5 percent of Hotel Prapatan.

The statement said the Diah family had already sold some of
its shares to Sumitro Djojohadikusumo's family and its associates
who now owned close to 40 percent of the company.

"The professor (Sumitro) and my parents go back a long way. It
is only natural that we want to see that the company is in good
hands. Being indigenous ourselves, we also wish that it remains
so. With the Professor's family and associates in control of
large blocks shares, this shall be so," Diah said.

Another major shareholder is James Riyadi of the Lippo Group
who bought the shares from Endang Utari Mokodompit, the daughter
of former state oil company PT Pertamina president Ibnu Sutowo.

Nurman said James should let Sumitro's son, Hashim, take
control of Hotel Prapatan.

"James has a cupful of acquisitions and restructuring to do
with within his group Lippo. I think he should consolidate them
first," he said.

"Politically it is quite sensitive that a business founded by
an indigenous business family be taken over by a conglomerate
controlled by nonindiginous people. This a bad news," he said.

The company recorded a Rp 2.07 billion (US$870,000) profit in
1995 and expected better in 1996.

The statement said under Nurman Diah's leadership the company
consistently posted profits. Over the last five years the company
earned Rp 33.72 billion in profit. This was 68.14 percent of
shareholder equity

The company said the meeting would approve the new members of
board of commissioner and directors. (09)