Indomobil plans to merge with PT Indomulti
Indomobil plans to merge with PT Indomulti
JAKARTA (JP): The giant Salim Group plans to merge its
automotive arm PT Indomobil Investment Corporation with the
publicly listed firm PT Indomulti Inti Industri.
The group said Saturday the planned merger would be conducted
by pooling interests with Indomulti, the surviving company.
The planned merger will automatically transform Indomobil, the
country's third largest auto producer, into a public company
without an initial public shares offering.
A Salim Group executive director, Benny S. Santoso, said the
planned merger would improve Indomulti's shareholders value and
market capitalization.
"This proves Salim Group's commitment to public shareholders,"
Benny said.
He added that after the merger, the Salim Group would divest
more of its ownership in Indomulti to the investing public
through a secondary share offering.
Before the merger, Indomulti, a multi-industry corporation
listed on the Jakarta and Surabaya stock exchanges, would divest
all of its businesses.
The company produces a wide range of goods, including
textiles, shoes, packaging and printing products, iron sheet and
mosquito coil.
If the planned merger was approved by Indomulti's independent
shareholders, the group said, Indomulti would be renamed PT
Indomobil Sukses Internasional and would focus on the automotive
business.
Indomobil's president Soebronto Laras said his company had
prepared to go public since last year so the community at large
would also benefit from Indomobil's growing auto business.
Last year, the company booked a Rp 119 billion (US$41 million)
net profit.
Indomobil is currently the country's third largest auto
producer after publicly listed PT Astra International and PT
Krama Yudha Tiga Berlian. Last year, it sold 60,000 vehicles, a
drop from 70,000 in 1995.
Indomobil assembles various automobiles from Japan, South
Korea and Europe. They include vehicles under the brand names of
Suzuki, Hino, Mazda, Nissan, Ssangyong and Volvo. Currently, it
also helps produce the national Timor sedan. (rid)