Ever Shine to acquire two other companies

Ever Shine to acquire two other companies

JAKARTA (JP): Independent shareholders in publicly-listed
synthetic fabric manufacturer PT Ever Shine Textile Industry gave
their approval yesterday to the company's plan to acquire two
other textiles firms at a cost of Rp 12 billion (US$5.22
million).

A director of Ever Shine, Erlin Lindawati Surianto, said that
the acquisition will be financed with the company's time deposits
and will be paid for within three months of the date of approval.

The two firms to be acquired are PT Prima Rajuli Sukses, a
manufacturer of nylon fabric, and PT Mingtak Niaga Jaya, a
producer of polyester fabric.

Erlin acknowledged that the acquisition contains a conflict of
interest because three executives of the company, namely Sung Pui
Man, Sung Man Tak and Emmy Ranoewidjojo, are executives of the
target companies.

Moreover, the three are the owners of PT Mingtak Niaga.
Furthermore, together with the owner of PT Prima Rajuli, Chiang
Li Ching, they are members of the Sung Family, which indirectly
owns and controls both companies. It was for these reasons that
the approval of the independent shareholders was required.

Prima Rajuli, which is 100 percent-owned by Chiang Li Ching,
has an authorized capital of Rp 8 billion, including a paid-up
capital of Rp 5 billion.

Mingtak Niaga Jaya is 50 percent-owned by Sung Pui Man, 40
percent by Sung Man Tak and 10 percent by Emmy Ranoewidjojo. It
has an authorized capital of Rp 10 billion, of which Rp 7 billion
is paid up.

Erlin told The Jakarta Post that 57 percent of the independent
shareholders approved the acquisition plan at yesterday's
extraordinary meeting here.

She said that the independent shareholders represent 50.1
million shares of the company's total outstanding 126.5 million
shares.

"Although the approval seems to be marginal, it satisfies the
regulation which requires approval from at least 51 percent of
independent shareholders," said Erlin.

Erlin said that the acquisition would allow the company to
expand its operations, increasing economies of scale in
production and marketing, and would strengthen its integration as
a textile company.

The acquisition is not the first for the company. In September
1994, Ever Shine acquired 100 percent of the shares of PT Indo
Yongtex Jaya, also a textile firm, after raising Rp 63 billion
from a rights issue.

Indo Yongtex Jaya has a production capacity of three million
yards of acetate fabric, 350,000 kilograms of texturized and
twisted yarn and 300,000 garments per annum.

Ever Shine's annual production capacity is currently 60
million yards of woven fabric, 1,980 tons of knitted fabric and
1.5 million garments.

During the first nine months of this year, the company posted
net sales of Rp 117.27 billion and gained a profit of Rp 19.08
billion, as compared with Rp 92 billion and Rp 15.56 billion in
the same period of last year. (08)