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Sat, 29 Sep 2001

JP/Holdiko sells stakes in SRC for Rp 204b

Holdiko sells stakes in SRC for Rp 204b

JAKARTA (JP): PT Holdiko Perkasa, a unit of the Indonesian Bank Restructuring Agency (IBRA) in charge of overseeing the sale of Salim Group assets, announced on Friday that it had sold a 60 percent stake in PT Salim Rengo Containers (SRC) for Rp 204 billion (around US$21 million).

SRC was sold to Holdiko's joint venture partner, Rengo Co. of Japan.

Scott Coffey, Holdiko's director, stated in a press release that he expected the sale and purchase agreement to be signed within the next few days.

If finalized, Holdiko's gross revenue from asset sales this year will reach Rp 7.332 trillion, surpassing it's 2001 target of Rp 7.2 trillion.

"We've been in the container business in Indonesia for almost a decade and are therefore pleased with the acquisition as we are optimistic about the future business growth of SRC and the Indonesian economy," Rengo's marketing manager Seiji Kaiura said in the statement.

SRC's sale was the ninth deal sealed by Holdiko this year. Originally, it had targeted the sale of 12 companies.

Currently the country's second largest company operating in the corrugated converting industry, Salim Rengo has a total production capacity of around 102,000 tons of corrugated carton boxes per annum.

As part of the settlement agreement with IBRA, the Salim Group transferred shares and assets in more than 100 companies to Holdiko.

Acting as a direct and indirect shareholder of these companies, Holdiko is responsible for supervising each company, with the aim of divesting a significant amount of the shareholdings. Holdiko will then channel the disposal proceeds to IBRA as part of the settlement agreement.

The release also said that Holdiko had issued information memorandums to interested investors regarding its shareholdings in broadcaster PT Indosiar Visual Mandiri; the Sugar Group; PT Berdikari Flour Mills; the Riau industrial assets comprising PT Batamindo Investment Corporation, PT Bintan Inti Industrial Estate and PT Karimun Sembawang Shipyard; and Guangdong Jiangmen ISN Float Glass Co Ltd. (10)