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)