Djajanti awaiting recommendation before going public

Djajanti awaiting recommendation before going public

JAKARTA (JP): PT Artika Optima Inti (AOI), a wood panel
manufacturer affiliated with the Djajanti Group, is still
awaiting the green light from the forestry minister before
issuing 66 million new shares that will account for 30 percent of
its enlarged shares.

Deswandhy Agusman, executive director of Peregrine Sewu
Securities, the lead underwriter of the share issuance, said that
the minister will soon release his recommendation after his
ministry conducts site examinations of the company's 17 forest
concessions.

He explained that the company would hold a public presentation
on April 6 without waiting for the forestry minister's
recommendation.

A.D. Erlangga, the company's forestry director, told The
Jakarta Post that he is optimistic that the approval will be
released soon because AOI presented the details of its planned
share issue to forestry ministry officials in February.

The share issuance is expected to raise Rp 450 billion (US$210
million), of which 30 percent will be used to finance the
acquisition of a 70-percent stake in Maluku Dinamika Semen, a
cement producer in Ambon, 30 percent to repay its debts, 15
percent to increase working capital and 25 percent to purchase
new plant equipment.

Maluku Dinamika is now building a cement plant on Seram island
with a capacity of 2.1 million tons a year. It has been
authorized by the Investment Coordinating Board (BKPM) to export
85 percent of its production.

Deswandhy explained that the investment for the cement factory
will likely reach Rp 600 billion and its construction is
scheduled for completion next January.

He said the Djajanti Group will hold road shows in 20 major
cities, including Tokyo, Hong Kong, New York, Chicago, London,
Paris and Amsterdam from April 10 to April 20 to promote the
shares.

Established in 1981, AOI, which handles its logging, saw
milling and panel board manufacturing activities in Seram, is the
first integrated wood-based company in the eastern part of
Indonesia.

The Djajanti Group was established in 1956 in Banjarmasin,
South Kalimantan, in timber logging and forest-related
industries. It established its food processing and fishery
businesses in 1979.

The group, chaired by Burhan Uray, is one of the largest
forest-based companies with 17 forestry concessions covering 3.7
million hectares.

With total assets of $530 million, the group's annual turnover
exceeds $370 million. It has over 60 subsidiaries and has more
than 30,000 employees. (03)