Hutchison wins HTP's Koja's bid

Hutchison wins HTP's Koja's bid

JAKARTA (JP): Hong Kong-based Ocean Investment Ltd. of
Hutchison Whampoa was high bidder for PT Humpuss Terminal
Petikemas' (HTP's) 49 percent interest in Jakarta's Koja
container terminal, said an executive of HTP.

"Ocean Investment has won the bid and will soon pay the US$147
million purchase price in cash," Ongki P. Sumarno, president of
HTP's parent company PT Humpuss Intermoda Transportasi, said on
Friday after the extraordinary shareholders' meeting.

Ongki said the shareholders meeting approved Ocean Investment
as the winner after the Hong Kong company managed to outbid other
rivals.

One rival, a consortium led by Singapore-based American
President Lines Ltd. of Neptune Orient Lines Group said earlier
it withdrew from the competitive bid.

Members of the above consortium are the Singaporean government
investment company, Temasek Holdings, and Indonesian shipping
firm Samudera Shipping Line Ltd.

Ongki said the sale proceeds of the Koja terminal will be used
to repay debts to IBRA, adding that HTP had debts with IBRA
amounting to over $100 million.

HTP is a subsidiary of PT Humpuss Intermoda Transportasi, a
company within the Humpuss Group, which is controlled by the
youngest son of former president Soeharto, Hutomo Mandala Putra.

The Koja terminal is 51 percent owned by state-run port
operator PT Pelabuhan Indonesia II (Pelindo II) and 49 percent by
Humpuss.

After the sale, Pelindo II still acts as the chief controller
of Koja terminal, according to Ongki.

Analysts criticized the sale of Koja terminal to a unit of
Hutchison Whampoa, saying that it could create a monopoly in port
operations in the area.

Hutchison, through its subsidiary Grosbeak, has a 51 percent
interest in the Jakarta International container Terminal, the
operator of another port terminal located next to Koja terminal.

Friday's shareholders meeting also approved management's
proposal to distribute a dividend of Rp 15 per share for the 1999
financial year.

The dividend payments will be derived from 60 percent of the
net income in 1999, the company said.(udi)