Indomobil now public firm by backdoor listing
Indomobil now public firm by backdoor listing
JAKARTA (JP): The giant Salim Group's automotive arm Indomobil
was transformed into a publicly listed company through a backdoor
listing yesterday.
The group initiated the listing by merging PT Indomobil
Investment Corporation with its publicly listed PT Indomulti Inti
Industri.
The merger pooled equity of the two firms with Indomulti being
the surviving company. Shareholders of both companies approved
the merger yesterday.
Indomulti was then renamed PT Indomobil Sukses Internasional,
which then sold all assets of the now-defunct Indomulti, worth Rp
63 billion (US$19 million), to the majority shareholder, the
Salim Group.
Indomulti had several subsidiaries that produced a wide range
of goods, including textiles, shoes, packaging and printing
products, iron sheets and mosquito coils.
A Salim Group executive director, Benny S. Santoso, said
Indomobil's move was to improve Indomulti's value and
capitalization.
"Initially, we wanted to improve Indomulti's performance in
the stock market. At the same time, we were preparing the listing
of Indomobil. We then decided to merge the two firms to achieve
both objectives at the same time," Benny said.
He said the merger was based on Indomobil's book value.
Indomobil's book value was about Rp 500 billion, while its market
value was about Rp 2 trillion.
"This proves Salim's commitment to public shareholders," he
added.
Nikko Securities Indonesia director Harianto Solichin said
Indomulti's stock rose to 3,750 Wednesday from below 3,000 before
the announcement of the merger early September.
Nevertheless, the merger resulted in decreased ownership by
the public in listed Indomobil to 5.13 percent from 20.51
percent.
Benny said the Salim Group would divest some of its ownership
in Indomobil to the public through a secondary offering of shares
early next year so the public could own at least 20 percent of
the company.
"So the public will also benefit from the expansion of
Indomobil," Benny said.
Indomobil posted a net profit of Rp 102 billion last year, up
from Rp 32 billion in 1995. In the first half of this year, the
company booked Rp 115 billion in net profit.
Indomobil president Soebronto Laras claimed yesterday that
Indomobil was the country's second largest automaker after
publicly listed PT Astra International, with a 21 percent share
of the market.
Last year, it sold 66,553 vehicles, a drop from 80,020 in
1995. It projected it would sell up to 81,380 vehicles this year.
"Well, the drop in sales in 1996 was because of the national
car issue," Soebronto said.
To withstand next year's possible economic downturn, Soebronto
said his company would launch a new Suzuki van, called Suzuki
Karimun.
Soebronto said Indomobil was cooperating with Nissan Motors Co
Ltd of Japan to produce an Asian car to compete with Honda City
and Toyota Saluna sedans.
"This Nissan Asian car would be produced here, including its
engine. With this car, we will target not only the Indonesian
market, but also the region," Soebronto said.
He noted that it would cost about US$150 million to construct
engine manufacturing facilities.
The car would make its public appearance by 2000.
Besides automobiles, Indomobil also produces Suzuki
motorcycles.
Last year, it sold 300,246 Suzuki motorcycles, up from 200,464
in 1995. This year, the company projected it would sell 442,455
motorcycles. (rid)