First Pacific says RI exposure at minimal level

First Pacific says RI exposure at minimal level

HONG KONG (Reuters): First Pacific Co Ltd said yesterday the
company's exposure to Indonesia was minimal with less than one
percent of its profit derived from the country.

"In terms of profit contribution (from Indonesia), it is
significantly less than one percent. So our exposure is minimal,"
said group vice president corporate communications, Robert
Sherbin.

"Indonesia was responsible for three percent of our turnover
within Asia, so basically about one percent of our turnover comes
from Indonesia," he added, noting that the company's main
exposure was in the Philippines, Hong Kong and Thailand.

First Pacific's turnover was US$8.3 billion in 1997, of which
US$3.5 billion, or about 41 percent, came from Asia.

"The impacts on our business of the recent development in
Indonesia are minimal. Our Indonesian operation comprises only a
tiny portion of First Pacific," Sherbin said.

"However, we are aware that an exaggerated perception of our
exposure to Indonesia is probably weighing down on our share
price," he added.

First Pacific shares have fallen HK$0.875, or 23 percent, so
far in May and closed at HK$2.85 on Wednesday. The stock fell a
further HK$0.05 to HK$2.80 in late Thursday morning trade.

"Even though we have cash that is worth HK$3.65 per share and
in addition to the net asset value of the company of about
HK$6.50 a share, we are trading at a discount not only to the net
asset value but also at a significant discount to the cash that
we have in the company," Sherbin said.

"We are not sure why that is, except perhaps a misperception
that we are more exposed to Indonesia than we really are."

First Pacific owns about 51 percent of a pharmaceutical
company, Darya-Baria, in Indonesia and a 35 percent stake in an
Indonesian telecommunications and mobile phone company, Metrosel.

Indonesia's Salim family is the largest single shareholder of
First Pacific, holding 31 percent.

Sherbin said First Pacific had no plans to inject funds into
other companies under the control of the Salim family.

"That is simply not possible for us to inject assets without
minority approval, and I should answer there is no plan
whatsoever to do so," Sherbin said.

"There are two ways that it could be done: it could be done
through a dividend, and we have stated very explicitly that we do
not intend to pay a special dividend to shareholders," he said.

"Or it could be done through the purchase of assets owned by
the Salim (family). If that were to take place, that would
require approval by minority shareholders, so there is absolutely
no plan whatsoever to do that. But even if there were, it would
require minority approval," he added.