Gajah Tunggal eyes

Gajah Tunggal eyes debt swap deals

JAKARTA: PT Gajah Tunggal, Indonesia's biggest tiremaker, wants its creditors to approve a US$73.3 million and Rp 164.9 billion ($18 million) debt swap plan that will allow the company to set aside money for expansion.

Gajah Tunggal's holding in unit PT GT Petrochem would be reduced to 28.36 percent from 50.01 percent under the proposed debt-for-equity swap, Gajah Tunggal said in a statement to be presented to investors in Jakarta on Thursday.

Refinancing its debt would allow Gajah Tunggal to focus on its tire business and expand production of radial tires and motorcycle tires, the Jakarta-based company said in the statement.

Gajah Tunggal, 10 percent owned by Europe's largest tiremaker Michelin & Cie, is benefiting from rising car sales in Indonesia. -- Bloomberg

;AFP; ANPAf..r.. Brief-India-air India's largest private airline plans stock market flotation JP/14/Brief

Jet Airways plans IPO

NEW DELHI: India's largest private airline, Jet Airways, said on Thursday it plans an initial public offering to fund a fleet expansion amid a projected big rise in air travel in the country.

"Jet Airways will be floating an IPO. Maybe by the end of this year or early next year," said Naresh Goyal, chairman and owner of Jet Airways.

The airline, which has about 43 percent of the domestic market, is looking to acquire more aircraft as the Indian government considers changes to its aviation policy to allow private carriers to fly to more destinations overseas.

Currently, private carriers are allowed to fly to a handful of destinations abroad in the south Asia region. Only state-owned domestic carrier Indian Airlines and international flag carrier Air India can fly to other foreign destinations. -- AFP

;AFP; ANPAf..r.. Brief-SKorea-Samsung South Korean court rejects taxation plea from Samsung Group JP/14/Brief

Samsung's taxation plea rejected

SEOUL: A South Korean court on Thursday rejected a tax complaint from the founding family of the Samsung Group, including an heir to the country's richest business conglomerate, court officials said.

The Seoul Administration Court ruled against Lee Jae-Yong, the group chairman's eldest son, who rejected charges that he had deliberately avoided a heavy tax on a special bond issue in 1999, they said.

Tax authorities imposed a tax of 44.3 billion won (US$42 million) on Lee's family and two executives after they received the bonds at below market prices from Samsung SDS, a computer software affiliate of the parent group.

The authorities based the tax charge on the market value, rather than the par or face value at which the bonds were issued to the recipients. -- AFP ;AFP; ANPAf..r.. Brief-Japan-auto Mitsubishi Motors in talks with Peugeot over possible cooperation JP/14/Brief

Mitsubishi may tie up with Peugeot

TOKYO: Struggling Japanese auto-maker Mitsubishi Motors said on Thursday it is in talks with France's PSA Peugeot Citroen Group over a possible tie-up.

"We are considering the possibility of a tie-up but we are still at an early stage of talks and therefore it's hard to say in what areas we can cooperate," a spokesman for Japan's fourth- largest auto-maker said.

Mitsubishi Motors Corp., hit by sagging sales after defect cover-ups came to light, declined to disclose further details of a possible business link with the French group in a revised revival plan due Dec. 17.

The Nihon Keizai Shimbun newspaper reported on Thursday that PSA Peugeot Citroen Group chairman Jean-Martin Folz is considering a production tie-up with Mitsubishi Motors. -- AFP