IBRA offers stake in vinyl companies

IBRA offers stake in vinyl companies

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
initiated on Wednesday the tendering process for all of its
shares in Sulfindo Adiusaha, which groups three vinyl companies
pledged to the government by the Salim Group as part of its debt
settlement agreement.

IBRA said here on Wednesday that potential buyers were
expected to submit offers by May 15 to JPMorgan or PT Bakti
Capital Indonesia, who were acting as financial advisors for the
sale.

According to the agency, Sulfindo comprises caustic soda
producer PT Sulfindo Adiusaha, ethylene dichloride and vinyl
chloride monomer producer PT Satomo Indovyl Monomer, and poly
vinyl chloride plant operator PT Satomo Indovyl Polymer.

"Sulfindo will be sold in a two-stage bidding process to
ensure the highest offer is obtained," IBRA Asset Management
Investment director Dasa Sutantio said in statement.

He added that IBRA had also placed advertisements in local
newspapers to make potential investors aware of the sale.

Sulfindo is one of hundreds of companies which have been
pledged to IBRA by the Salim Group as part of the settlement of
its massive debt to the government. The companies are directly
overseen by Holdiko Perkasa, established by IBRA and the Salim
Group to manage and operate the companies.

Holdiko director Scott Coffey said that the Sulfindo sale was
part of a program to sell other Salim Group companies this year,
including coal mining company PT Indocoal, galvanized iron
sheeting manufacturer PT Kerismas Witikco Makmur, TV station PT
Indosiar and PT Indopoly.

Already, Holdiko has completed the sale of First Pacific,
Indocoal, Salim Plantations, Mosquito Coil Group, Indomaret and
Indocement.

This year, IBRA is trying to raise some Rp 27 trillion
(US$2.84 billion) in cash to help plug the deficit in the current
state budget, estimated at 3.7 percent of the gross domestic
product.

Meanwhile, IBRA raised Rp 42.47 billion from the auction of
its properties in Central Java and Yogyakarta on Wednesday.

PT. Triagung Lumintu auction house, which handled the auction,
said that the company successfully sold five lots of properties
in Yogyakarta, two in Semarang, two in Tegal and another one in
Temanggung during the auction.

Nine of the auctioned properties were previously owned by the
now defunct Bank Harapan Santosa, while the remainder belonged to
Bank Guna Internasional which is now closed.(05/23)