Fri, 17 Nov 2000

IBRA cancels Indomaret's IPO

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA) has decided to sell its 51 percent share in retailer PT Indomarco Pristama (Indomaret) to a strategic investor through a competitive auction instead of through an initial public offering (IPO) as initially planned.

IBRA said on Thursday that the decision was made based on the result of a meeting held by the Financial Sector Policy Committee (FSPC) held on Nov. 10.

The agency said the sale of its stake in the retailer to a strategic investor would give it a better opportunity to get maximum gain.

The Salim Group transferred its 51 percent ownership in Indomaret last year to IBRA as part of the restructuring of the business group's massive debts to the government.

Publicly listed cigarette company PT Hanjaya Mandala Sampoerna had proposed buying a majority stake in Indomaret last month but it did not receive a positive response from IBRA. (hen)