Du Pont buys Branta shares

JAKARTA (JP): Chemical giant E.I. Du Pont de Nemours and Company has bought 19.8 percent of Indonesian tire-yarn and cord fabric manufacturer, PT Branta Mulia.

Branta Mulia said Saturday that Du Pont was buying the shares at US$1.45 (Rp 4,150) a share.

"PT Branta Mulia and E.I. Du Pont de Nemours and Co. announce that they have successfully finalized all agreements for Du Pont's purchase of a major equity stake in PT Branta Mulia." Branta Mulia said in a statement.

"The two companies are also forming a strategic alliance through which they will undertake important joint expansion projects in Indonesia, China and India," it said.

Branta Mulia's president Ibrahim Risjad, a close associate of Indonesian tycoon Liem Sioe Liong, said Du Pont's investment indicated its confidence in Branta Mulia and Indonesian industry.

"The alliance between us will bring tremendous growth opportunities. We expect to reach new profit levels and better return for our shareholders," he said.

The two companies will announce details of their alliance and plans for Branta Mulia's major expansion by the end of this month. (aly)