IBRA to sell stake in iron company and subsidiary

IBRA to sell stake in iron company and subsidiary

JAKARTA (JP): The Indonesian Bank Restructuring Agency (IBRA)
will sell its 97.69 percent stake in galvanized iron sheet
manufacturer PT Kerismas Witikco Makmur as part of its asset
disposal program to help finance the state budget.

Dasa Sutantio, director of IBRA's Asset Management Investment
(AMI) unit, said here on Monday the sale would also involve
Kerismas's principal debt of Rp 127.3 billion ($134 million), and
the agency's 50.14 percent stake in PT Semarang Makmur.

PT Kim Eng Securities has been appointed as financial adviser
for the sale of Kerismas, Dasa told a media conference.

Kerismas -- with factories in Cilincing, North Jakarta and
Bitung, North Sulawesi -- produces plain and colored galvanized
iron sheets, primarily for use as roofing material. It also
produces construction material such as wall cladding, and floor
plates for reinforcing concrete floors.

These products are marketed under the brand names of Gajah
Berlian, Indolock, Perkasadek, Krisdek, and Perkasa Roof Tiles.

Semarang Makmur produces plain galvanized iron sheets under
the brand name of King Elephant, Kinglock, and Kingdeck, and has
a factory in Semarang, Central Java.

"The sale is open to any investors willing to buy the whole
package," Dasa said, adding that a strategic sale was seen as the
best way to obtain optimum value.

The sale process comprises two stages, he said, the first
involving interested parties submitting their preliminary bids.

"This is to determine their seriousness in buying the
company," he said.

The preliminary bids would then be followed by a due diligence
phase where among other things potential buyers are taken to the
company's factories for a site visit, Dasa said.

IBRA owns PT Kerismas and PT Semarang through PT Holdiko
Perkasa, which was established in 1999 in connection with the
debt settlement agreement between Salim Group to the government.

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.

"The second stage involves the final bids by investors, after
which Holdiko and IBRA will determine the winner," he said.

Dasa said the sale was expected to be concluded by the end of
May this year.

Holdiko's corporate finance manager Stanley Halim said that
Kerismas assets as of August 2000 were worth Rp 311 billion
($32.7 million), with equity worth Rp 115 billion.

Kerismas's total installed production capacities of plain
galvanized iron sheets and colored galvanized iron sheets are
98,820 tons per year and 48,000 tons per year respectively.

The company operates at a utilization rate of more than 90
percent, he said.

As of August 2000, Kerismas recorded sales of Rp 282.3 billion
and gross profit of Rp 47.6 billion, Stanley added.

Dasa said that more than 40 local and foreign investors have
expressed interest in buying the stakes.

"Some interested parties came from the financial sector, but
mostly are from those that have an interest in this kind of
business," he said.

Holdiko director Scott Coffey said that together with IBRA,
the company plans to announce an additional list of assets for
disposal this year.

"Together with the sale of our stakes in Indocoal, Indomaret,
Indosiar, Sulfindo, and Kerismas, Holdiko aims to raise over Rp 1
trillion from the sale of these spill-over assets," he said.(tnt)