Morgan Stanley acquires Ometraco stake
Morgan Stanley acquires Ometraco stake
JAKARTA (JP): Morgan Stanley Capital Partners (MSCP), the direct investment unit of the U.S.-based Morgan Stanley Group, has expanded into Indonesia by acquiring a nine percent stake in the publicly listed Ometraco Corporation.
Daniel Mintz, the director for MSCP's Asian operations, said yesterday that the equity participation deal worth around US$20 million is expected to give the company more access to the growing potential of the Indonesian economy.
"Through Ometraco, we will further identify business expansion particularly in consumer-based industries and financial services," he said after the inaugural ceremony of the two companies' tie-up.
The ceremony was attended by Alen E. Goldberg, MSCP's vice chairman, and Ferry S. Santosa, the chairman of the Ometraco Group.
Mintz said that the direct investment, the first such cooperation in Indonesia, was made after months of studies on Ometraco's operational and management performance.
"We hope the tie-up will benefit Ometraco from Morgan's wide operational networks," he said.
MSCP, which is listed on the New York Stock Exchange, has total assets of around $110 billion.
Mintz said that the company, which has 24 overseas offices, has a direct investment of around $1.8 billion worldwide, half of which is placed in non-American companies located in Asia and the Pacific.
Omteraco's president, Boyke Gozali, said that the cooperation reflected the confidence of foreign companies not only in the future of Ometraco but also in the prospect of the country's macro-economy.
He said that Ometraco, which is now engaged in poultry and shrimp feed production, pharmaceuticals, consumer products, communication and financial services, expects to receive many benefits from its partner not only in management skills but also in its wide market networks.
Boyke also said that Ometraco will soon acquire a 51 percent stake in the publicly-listed Bank Tiara to give Ometraco stronger financial structure and wider market access.(hen)