KIA to spend Rp 125.5b to lift stake in 2 firms

JAKARTA (JP): Publicly listed ceramic maker PT Keramika Indonesia Assosiasi (KIA) is set to spend Rp 125.5 billion (US$52.3 million) to buy all the outstanding stock in two ceramic firms, PT KIA Keramik Mas (KKM) and PT KIA Serpih Mas (KSM).

KIA announced Wednesday that it planned to spend almost Rp 28.2 billion to increase its stake in KKM from 85 percent to 100 percent.

The company said it would buy the 15 percent or 23.25 million shares from International Finance Corporation.

KKM, established in 1980 under the name PT Lantai Keramik Mas, produces glazed ceramic tiles. Its initial production capacity, in 1984, was 4.8 million tiles a year.

This has increased the production capacity to 41.4 million pieces a year.

At the end of last year KKM's total assets were Rp 299.85 billion.

The firm recorded a net profit of Rp 13.34 billion in 1996 in comparison to Rp 10.32 billion the previous year. Its sales rose to Rp 49.74 billion in 1996 from Rp 37.34 billion in 1995.

Stake

KIA also announced Wednesday that it would spend Rp 97.35 billion to increase its stake in KSM to 100 percent from 21 percent.

Eighty million shares are to be bought from Ongko Multicorpora while the remaining 11.6 million shares, will come from International Finance Corporation, the company said.

KSM was established in 1980 to produce 750,000 square meters of floor tiles per annum in 1984.

The company has since set up another plant in Cileungsi, West Java, raising its total production capacity to 5.8 million square meters of floor tiles a year.

The announcement said that KSM was also constructing floor and granite tile plants in Karawang, West Java, with production capacities of seven million square meters and 1.2 million square meters respectively.

KSM had total assets of Rp 302.97 billion as of Dec. 31, 1996.

The floor tile producer posted a net profit of Rp 11.10 billion in 1996 in comparison to Rp 3.02 billion in 1995.

The company recorded sales of Rp 17.66 billion in 1996, against Rp 17.19 billion in 1995.

KIA said the purchases were aimed at strengthening its position as one of the strongest ceramic producers in Indonesia.

The announcement said the share purchase of the two firms would be wholly financed by proceeds from its planned rights issue.

KIA, part of the diversified Ongko Group, produces, distributes and markets ceramic products for commercial use.

The firm also produces and markets porcelain wall tiles with the trademark KIA. (09)