IBRA announces sale of seven Salim oleochemical firms
IBRA announces sale of seven Salim oleochemical firms
JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
announced on Wednesday that it would sell seven oleochemical
companies pledged by the Salim Group conglomerate.
Head of IBRA asset management investment division Thomas
Lembong said that companies would be sold in one package through
a two-stage bidding process which was expected to be completed
before the end of this year.
Speaking at a press conference, Thomas said that the
invitation to bid would be sent immediately to prospective
investors.
He said that Chase JF had been appointed in July to lead the
selling process.
The Salim oleochemicals group is one of the largest producers
of natural fatty alcohol in the world, and the second largest in
Asia.
The group's overall production capacity is 90,000 metric tons
per year of natural fatty alcohol, a raw material used in the
production of a wide range of chemical products such as soaps,
shampoos, detergents, cosmetics, lubricants, paints, coatings,
and food additives.
The group's headquarters is in Singapore with projects located
in Belawan (Medan), Singapore, on Batam Island and in Germany.
The group's products are sold worldwide through Salim
Oleochemicals (Singapore) Pte. Ltd., Salim Oleochemicals GmbH
(Germany), and Salim Oleochemicals Inc. (USA).
Thomas said that under the two-stage bidding process,
interested parties were requested to submit their preliminary
bids for further selection before they were allowed to enter the
due diligence stage.
He added that the winner would be decided before the end of
this year after all final bids had been received.
The Salim Group pledged ownership of some 100 companies to
repay its Bank Central Asia (BCA) obligations to the government.
IBRA is targeted to raise some Rp 18.9 trillion (US$2.28
billion) in cash this year to help finance the current 2000 state
budget. So far, the agency has only raised around Rp 7.9
trillion.
The agency plans to raise around Rp 5 trillion this year from
the sale of companies pledged by the Salim Group.
In addition to the oleochemicals group, IBRA is now in the
process of selling other Salim assets, including the Wisma BCA
office building, mining company PT Karimun Granite, and the
Mosquito Coil Group.
IBRA has recently sold a 6.1 percent stake in Salim's Hong
Kong-based First Pacific investment company, raising around Rp
420 billion. (rei)