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)