Investors give cool reception to Nusamba deal

JAKARTA (JP): Astra International share trading eased yesterday with investors waiting to see the outcome of massive buying Thursday by a politically-connected business group.

Securities analysts said investors had stopped trading the automobile company's shares until PT Nusantara Ampera Bhakti (Nusamba) announces the motives behind its takeover move.

Astra shares fell Rp 50 to close at Rp 3,950 on the Jakarta Stock Exchange yesterday, with only 1.427 million shares changing hands.

Not one Astra share was traded on the Surabaya Stock Exchange yesterday, where over 144 million Astra shares changed hands Thursday.

"Foreign investors are getting nervous because, as you know, there is now an element of political risk in the automotive company," David Chang of a joint-venture securities company said yesterday.

Nusamba, a business group controlled by three charity foundations chaired by President Soeharto, took control of at least 10 percent of the automotive company's shares on the Surabaya exchange on Thursday.

Muhammad (Bob) Hasan, a Nusamba commissioner, said earlier he planned to buy more Astra shares and establish an alliance with existing major shareholders, most probably Danamon and Salim groups, to control Astra's management.

"With the entry of Nusamba, Astra is now more like Bimantara Citra and Citra Marga NP," Chang said yesterday, adding that Astra share prices would become as sensitive as those of the two companies, which are controlled by the President's children.

Bambang Trihatmodjo controls Bimantara Citra and Siti Hardiyanti Rukmana controls Citra Marga NP.

Another analyst said Nusamba's move could damage Astra's relationship with the Toyota Motor Corporation, its Japanese principal.

Analysts are speculating that Nusamba could force Astra to provide facilities to PT Timor Putra Nasional to produce the national car, or that Nusamba might use Astra to develop a rival car under the national car program.

Hutomo (Tommy) Mandala Putra, Soeharto's youngest son, won a license early this year to develop the so-called national car in cooperation with Kia Motors of South Korea.

But Japan, the United States and the European Union have attacked the deal for breaking the non-discriminative principles of the World Trade Organization's trade accord.

Although Bob Hasan's take-over move has been criticized, the chairman of the Capital Market Supervisory Agency (Bapepam), I Putu Gede Ary Suta, said yesterday the agency considered the takeover was fair and legal.

"What Bob Hasan did as an investor is quite normal," Putu told reporters in Semarang.

Putu denied that Nusamba shareholder and commissioner Bob Hasan had misled the market by making several contradictory statements about the Astra takeover.

"I think he only disclosed his intention, not a statement to buy," he said. "There are many investors who buy and sell Astra shares. But why do you only question Bob Hasan?".

Putu said Bob Hasan's statement on Astra shares had only affected market perceptions.

On speculation that the government was backing Nusamba's move to win the international auto dispute, Putu said: "This is not under Bapepam's authority. People have different motives to invest in companies. And we don't have any regulations which prohibit people from buying shares."

Minister/State Secretary Moerdiono said Wednesday the government would prefer that the share holdings of Astra remained diversified with the largest shareholders owning around 10 percent.

But analysts believe the minister's statement reflected government dissatisfaction over tobacco tycoon Putera Sampoerna's attempt to buy a majority stake in the automotive company.

Putera, the chairman of HM Sampoerna, one of the country's largest cigarette manufacturers, bought 9.81 percent of Astra shares on his personal account and another 2.85 percent through one of his companies a few weeks ago.

But Sampoerna announced Thursday his company had liquidated its 2.85 percent stake in Astra. (hen/alo)