Indosiar to float shares next year

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)