Export shoe producer acquires five firms

Export shoe producer acquires five firms

JAKARTA (JP): PT Indosepamas Anggun, an export-oriented shoe
producer affiliated to the widely diversified Salim Group, has
taken over stakes in five firms within the same group at a total
value of Rp 155.55 billion (US$70.54 million).

"The acquisition, which had been approved by the Capital
Market Advisory Board, was approved by Indosepamas's independent
shareholders during our extraordinary shareholders meeting today
(yesterday)," the company's president, Fransiscus Welirang, told
reporters.

He explained that the company, which aims at expanding its
core business after the acquisition, acquired a 100 percent stake
of steel-related manufacturer PT Keris Mas Witikco Makmur, a 100
percent stake of textile company PT Adilanggeng Kencanalatex, a
51 percent stake of a producer of mosquito coils PT Sinar
Plataco, a 65 percent stake of PT Indographica Ekakarsa, a
producer of carton containers and printing matter, as well as the
assets and license of PT Prospect Indospirit Footwear, a shoe
producer.

"The takeover of the steel-related manufacturer and textile
company is intended to strengthen the upstream industrial line of
Indosepamas," Welirang said.

To finance part of the internal acquisition, Indosepamas's
shareholders approved the company's plan to offer 99.65 million
rights shares with a nominal value of Rp 1,000 to its
shareholders.

"The company will offer the rights shares under a 1:4 ratio
scheme, in which shareholders are entitled to purchase four new
shares at Rp 2,100 each to every old share they hold," he said.

With the acquisition, the company estimates to gain a
consolidated after-tax profit of Rp 36 billion this year, he
said.

Indosepamas reported that its net income in the first nine
months of last year reached Rp 6.2 billion.

Welirang expected that after the acquisition, the company,
which now produces Reebok and Adidas sport shoes, will record an
increase in sales to Rp 200 billion this year from Rp 61.15
billion a year earlier.

Indosepamas exports 99 percent of its products to the United
States and European and Asian countries. (fhp)