IBRA announces sale of five mosquito coil firms
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) announced on Monday the sale of five mosquito coil companies which together control 59 percent of the domestic market.
Phoa Bing Han, division head of IBRA's Asset Management Investment (AMI) unit, said the five companies are controlled by PT Holdiko Perkasa, a holding company established as part of the debt settlement agreement between IBRA and the Salim Group.
PT Jardine Fleming Nusantara has been appointed as financial adviser for the sale of the mosquito coil group stake, he told a media conference.
The group manufactures and distributes the Tiga Roda, ABC, Cap Kambing, and Dua Kelinci brand mosquito coils, and milling raw materials. It has a combined production capacity of 12.9 million cartons a year, and holds about 59 percent of the mosquito repellent market in Indonesia, Han said.
The companies involved are PT Chandra Mulia Permai (Jakarta), PT Menara Kaloka (Semarang), PT Sinar Plataco (Cileungsi, Cibitung, Semarang), PT Perkasa Mostindo Utama (Medan), and PT Oborjaya Abadi (Jakarta).
"The sale is open to any potential investors willing to buy the whole stake," he said, adding that investors wishing to buy only part of the stake would have to form a consortium to buy the entire stake.
He refused to disclose a price tag for the package saying that AMI preferred to let bidders submit their own proposals.
The mosquito group is the fourth of Holdiko's assets to be offered to the market this year.
The others were stakes in PT Astra International early this year, and its offer of Wisma BCA and the 17.25 percent stake in PT Karimun Granite, both last month.
The sale will involve a two-stage selection process, Han said.
The first stage requires interested parties to submit their preliminary bids which will be selected before going on to the due diligence phase. The second stage requires the selected parties to submit their final bids with the winning bidder being determined by Holdiko and IBRA.
Han said the sale was expected to be concluded by the end of October this year.
Holdiko Vice President for Investor Relations Irawati Koswara- Simms said that at least 20 local and foreign investors have expressed interest in buying the stake.
Foreign investors include those from Singapore, Hong Kong, Malaysia, and the United States, she said.
Holdiko was established last year in connection with the debt settlement agreement between the Salim Group and IBRA and the loans extended by Bank Central Asia to companies affiliated with the business group.
As part of the agreement, the Salim Group transferred shares and assets in more than 100 companies to Holdiko, which will subsequently transfer the proceeds from the sale of the assets to IBRA. (10)