JIHD to acquire 21.3% stake in PT Satelindo
JIHD to acquire 21.3% stake in PT Satelindo
JAKARTA (JP): A publicly-listed property developer, PT Jakarta
International Hotel & Development (JIHD), announced yesterday it
is to acquire a 21.3 percent stake in PT Satelindo, a private
telecommunications operator, for Rp 921.9 billion (US$400
million).
"We have to do something to boost our performance and we
believe that telecommunications is a promising sector which will
help stabilize and increase our earnings," JIHD director Budiman
Effendy said.
Budiman said that JIHD needs a new source of revenue because
the company presently cannot earn anything from its Borobudur
Hotel in Jakarta because it is being renovated.
The acquisition, according to Budiman, will allow JIHD to take
a 21.3 percent share of Satelindo's profits this year.
"It is for the benefit of our company. We have no other
intention behind the acquisition," Budiman noted.
He also denied an assumption that Satelindo's share valuation
is too high.
"The proposed acquisition price represents approximately 75
percent of the price level valued by CIBA, an independent Hong
Kong share appraiser, meaning that we get a 25 percent discount.
The price also represents a 20 percent discount, compared to the
price for a major foreign telecommunication operator in March
last year," he argued.
He said that an independent financial advisor, Lazard Asia
Ltd., has also said that the proposed acquisition price is fair.
Budiman said that because the acquisition will be done
indirectly, it will not change the composition of Satelindo's
stockholders.
"We will buy all the shares owned by Bright Eagles Securities
Ltd., which owns 95 percent of the shares in PT Graha Jakarta
Sentosa," he said. "Graha Jakarta owns 50 percent of the shares
of PT Bimagraha, which holds 45 percent of the shares in
Satelindo."
Bright Eagles' 95 percent ownership in Graha Jakarta is
equivalent to 21.3 percent of the shares in Satelindo.
He said that Satelindo is presently 45 percent owned by
Bimagraha, 25 percent by DeTeMobile, 22.5 by PT Telkom and 7.5
percent by PT Indosat.
Besides Graha Jakarta, Bimagraha is 50 percent owned by
Bimantara.
Budiman said that JIHD will issue three new shares for each
two old shares at Rp 1,475 each to raise funds of Rp 854 billion.
Out of the funds, Rp 831 billion will be used to finance the
acquisition of the Satelindo shares and the remaining Rp 23
billion to strengthen its working capital.
He also said that the remaining Rp 91 billion for the
acquisition will be paid with shares in PT Graha Putra Nusa, a
subsidiary of JIHD, which owns a plot of land in the Sudirman
Central Business District in South Jakarta.
Rights issue
He explained that JIHD has appointed PT Schroders Indonesia to
arrange the rights issue. But JHID founders, Tommy Winata and
Sugianto Kusuma, will act as underwriters.
The planned acquisition, according to Budiman, is subject to
approval from minority shareholders, as required by a capital
market regulation because it contains conflicts of interest.
He said that a director of JIHD, Sugianto Kusuma, is also a
director of Bright Eagles which is owned by Kwok Thai Hwa.
"We hope that minority shareholders will give their approval
at an extraordinary shareholders meeting to be held on May 30,"
he said.
JHID is 37 percent owned by private investors, while Tommy
Winata and Sugianto Kusuma control the company with a combined 48
percent ownership. The other shareholders are PT Danareksa, the
government, PT Perhotelan dan Perkantoran Indonesia and PT Astek.
(08)