Govt to select bidders for Indosat
Govt to select bidders for Indosat
JAKARTA: The Indonesian government will decide later Wednesday which investors will qualify to bid for a 41.94 percent stake in international call service provider PT Indonesian Satellite Corp. (Indosat).
A government official told Dow Jones Newswires that 16 local and foreign investors have submitted letters to the government indicating their interest in buying the stake.
They are the Government of Singapore Investment Corp., AIG Investment of the U.S., GE Capital, Newbridge Capital, Batavia Investment Fund, PT Sarijaya Securities, Hi-Tech Securities, Australia's Telstra Corp., Singapore Technologies Telemedia Pte. Ltd., Telekom Malaysia Bhd., the Singapore unit of Norway's Telenor ASA., Malaysia's Maxis Communications Bhd., Orange SA of France, Thailand's Advanced Info Service PCL, China Mobile (Hong Kong) Ltd., and Milbank, Tweed, Hadley & McCloy, said the official who declined to be named.
He said the investors that will be allowed to bid must have more than $450 million in total assets and aren't telecommunication operators based in Indonesia.
"Only qualified investors will be invited to submit their bids for the stake," the official said.
The government currently has a 56.9 percent stake in Indosat. The sale is part of the efforts to raise funds to help finance a deficit in the state budget, which is expected to be around 2.5 percent of gross domestic product this year. --Dow Jones
Taiwan to sell 30% stake in China Airlines
TAIPEI: Taiwan plans to sell up to 30 percent of China Airlines (CAL) by the end of the year to speed up privatization of the island's leading carrier, it was reported Wednesday.
The China Aviation Development Foundation (CADF), which has a controlling 72 percent stake in CAL, hopes to accelerate auctions of CAL shares, the Economic Daily News cited the foundation chairman Lin Ling-san as saying.
CADF hopes to sell the stake to other domestic or international airlines, or companies with strong management teams, the paper said.
Two foreign holding companies, Salomon Smith Barney and China Development Financial Holding Corp., have voiced interest in the carrier, it added.
CAL plans to buy more than a dozen airplanes to upgrade its fleet but it has not yet placed an order.
It is speeding up its fleet replacement plans after one of its Boeing 747-200 passenger jets disintegrated in mid-air over the Taiwan Strait on May 25, killing all 225 people aboard. --AFP
Nissan to take 50% in new Chinese car firm
TOKYO: Japan's Nissan Motor Co. Ltd. will pay US$1 billion for a 50 percent stake in a new Chinese car firm to be created from the core assets of Dong Feng Automobile Co. Ltd., an informed source said Wednesday.
Japan's number three automaker will join rival Toyota Motor Corp. -- which announced a joint venture with Chinese counterpart First Automotive Works last month -- in China's booming auto market.
A Nissan spokesperson confirmed an announcement on the tie-up, which has been under discussion for several months, would take place on Thursday.
"The president of Nissan, Carlos Ghosn, and the chairman of Dong Feng will make an announcement in Beijing," spokesman Gerry Spahn told AFP.
Nissan's 8.55 billion yuan ($1 billion) investment is a little more than three times the profit expected by Dong Feng in 2002.
Dong Feng is one of China's top three automakers, producing 150,000 lorries, buses and light utility vehicles last year, as well as some 60,000 cars. --AFP