Sat, 09 Dec 2000

Indosiar to float shares next year

JAKARTA (JP): Private television station Indosiar, one of the companies handed over to the Indonesian Bank Restructuring Agency (IBRA) by the Salim Group, will float its shares on the local stock market next year.

IBRA said on Friday the television station would sell new shares accounting for about 15 percent of the company's enlarged stock in an initial public offering to be held early next year.

PT Holdiko Perkasa, the holding company for the Salim Group's assets now under the control of IBRA, will prepare to dispose of its ownership in the television station soon after the IPO.

"With Indosiar's position as Indonesia's prime media company, we're confident the share offer will generate a good response in the market," said Dasa Sutantio, the director of IBRA's asset management and investment division.

Holdiko currently holds 67.37 percent of Indosiar's shares.

Dasa said IBRA had filed for a registration statement with the Capital Market Supervisory Agency, or Bapepam, and expected to announce the IPO details during a public expose scheduled for January.

Scott Coffey, the director of Holdiko, said that together with the disposal of Indocoal and Indomaret, the company expected to conclude three deals in the first quarter of next year.

PricewaterhouseCoopers FAS and PT Trimegah Securities Tbk. are acting as joint financial advisers to Holdiko in its ownership divestment plan of Indosiar. Trimegah Securities will also act as the lead managing underwriter for Indosiar's IPO.

Since January 2000, Holdiko has closed 10 asset disposal transactions, generating gross proceeds of Rp 8.7 trillion with a recovery rate of 54 percent for all assets sold by Holdiko Perkasa.

PT Holdiko Perkasa was established last year as part of the settlement of the Salim Group's massive debt to the government.

As part of the settlement agreement with IBRA, the Salim Group transferred shares and assets in more than 100 operating companies to Holdiko.

As the direct and indirect shareholder of these companies, it is Holdiko's responsibility to supervise each individual company with the aim of disposing of a sufficient amount of their shares. Holdiko will subsequently funnel the proceeds from the disposals to IBRA as part of the debt settlement agreement. (05)