Malaysian group buys 60% of Multidana

JAKARTA (JP): Arab Malaysian Securities Holding Sdn. Bhd. of Malaysia has taken over a 60 percent stake in PT Multidana Sekurindo, a member of the Jakarta Stock Exchange, through an injection of Rp 6.6 billion (US$3 million) in fresh funds.

Multidana's president, Jimmy Hidayat, said here yesterday that the funds injected by the Malaysian company would be used to strengthen his company's financial structure.

He said in addition to the fresh capital injection, Arab Malaysian Securities, a member of the Arab Malaysian Banking Group, would also provide capital market expertise to Multidana.

The takeover deal signed last week makes the Arab Malaysian Securities Holding the first Malaysian company to operate in the Indonesian capital market.

Multidana, which is also a member of the parallel or over-the- counter market, was previously wholly owned by Jimmy, who is a former senior executive of the Dharmala Group.

Jimmy said that Libra Capital Asia Ltd. of Hong Kong had also acquired another 20 percent stake in Multidana, slashing his stock holding in the company to a mere 20 percent.

He said that the Hong Kong company acquired the 20 percent stake through the injection of around Rp 2 billion in fresh capital into Multidana, which at present focuses its activities on brokerage activities.

The financial injection from the Malaysian and Hong Kong companies doubled Multidana's capital to Rp 11 billion, from Rp 5.5 billion at present, he said.

Multidana's name will be changed to PT AMMB Securities to represent the participation of the Malaysian firm, he said, adding that the new majority shareholder also agreed to retain his position as Multidana's president.

"As part of the deal, the Malaysian firm will not change Multidana's management," he said.

Jimmy explained that the increase in the capital would enable the company to expand operations into underwriting and corporate advisory in addition to the existing stock brokerage service.

The Arab Malaysian Banking (AMB) Group is a major financial institution in Malaysia, with total assets and equity respectively reaching $7.6 billion and $610 million.

The business group operates in merchant and commercial banking, multi-financing, stock broking, investment fund management and insurance. (hen)