GT Petrochem restructures its $440m debt
GT Petrochem restructures its $440m debt
JAKARTA: Indonesia's tire cord producer PT GT Petrochem Industries said on Friday it has reached an agreement with its creditors to restructure US$440 million of its debt.
Under the restructuring agreement, which is effective March 7, the company's debt falls to $248 million, bearing a progressive interest rate of the Singapore interbank offered rate plus one to two percent.
GT Petrochem, a unit of tire producer PT Gajah Tunggal, said it will issue floating rate notes in various tenures to repay the outstanding debt.
Its creditors include Bayerische Hypo-und Vereinsbank AG, Lehman Brothers Commercial Corporation Ltd, Raiffesen Zentralbank Oesterreich AG, Transpacific Financial Services Ltd. and UBS AG.
Gajah Tunggal was founded by businessman Sjamsul Nursalim, who after the 1997 Asian financial crisis pledged the company and its units along with other assets to the government to settle his Rp 27.4 trillion (US$3.09 billion) of debts. --Dow Jones
Samsung to scrap $820m shares
SEOUL: The world's largest memory chipmaker Samsung Electronics said on Friday it would buy back stocks worth around US$820 million to prop up share prices.
Samsung Electronics Co. said it would buy back and cancel 3.1 million ordinary shares and 470,000 preferred shares between March 11 and June 10.
The Samsung board approved the spending of one trillion won (US$820 million) for the buyback, the company said.
The announcement led to shares rebounding over two percent in morning trade on Friday.
Samsung Electronics forecast a net profit of more than six billion dollars this year, adding it would also boost investment.
Its net profit soared to a record 7.5 trillion won last year from 2.95 trillion won in 2001.--AFP
Merck to take over Banyu
TOKYO: U.S. pharmaceutical giant Merck said on Friday it has sealed a US$1.5 billion dollar deal to take full control of Japanese counterpart Banyu, despite reported complaints from investors that the asking price was too low.
The agreement will push Merck and Co Inc.'s stake in Banyu Pharmaceutical Co. Ltd. to around 80 percent from 51 percent.
The exact percentage of the shares tendered will be calculated after the Tokyo Stock Exchange closes later in the day, while the actual transaction will be carried out on March 13.
"We are very pleased about the outcome and wish to thank all Banyu shareholders that supported our tender offer," David Antice, president of human health and responsible for Merck's business in Japan, said in a statement.
But the takeover had met opposition from Banyu investors who complained the asking price was not enough, reports said. -- AFP