Ometraco plans to acquire 51% stake in Bank Tiara

Ometraco plans to acquire 51% stake in Bank Tiara

JAKARTA (JP): The publicly-listed Ometraco Corporation plans
to acquire a 51 percent stake in Bank Tiara Asia, a commercial
bank also listed on the Jakarta and Surabaya stock exchanges.

Boyke Gozali said that the planned takeover deal will be worth
around Rp 160.6 billion (US$72.7 million) or Rp 2,100 (90 U.S.
cents) per share.

He said that the acquisition of the majority stake in Bank
Tiara, which is also majority controlled by founders of Ometraco,
is subject to approval from minority shareholders.

The proposed price of the planned transaction is still below
Bank Tiara's stock price of Rp 2,175, quoted on Tuesday.

Boyke claimed that the acquisition price is reasonable enough
as the real value of the bank's shares could achieve a range
between Rp 3,000 and Rp 3,200.

Ometraco, which booked total assets of around Rp 1.3 trillion
and net earnings of Rp 39 billion in 1994, operates in the
production of consumer products, pharmaceuticals, poultry and
animal feed and financial services.

The planned internal acquisition of Bank Tiara will be the
latest series of business reorganizations within the Ometraco
group.

Ometraco was listed on the Jakarta and Surabaya stock
exchanges in 1992 as a leasing firm but it changed its
operational status as a holding company following its listing by
acquiring the majority stake of its six affiliated companies.
Bank Tiara is one of Ometraco's affiliated firms which operate
under different flags.

Boyke said that the takeover of Bank Tiara will significantly
strengthen Ometraco Corporation's capital structure and its
market capitalization by one and a half times.

Ometraco is now preparing a rights issue, a limited public
offering, to finance the planned acquisition, he said, adding
that the company would simultaneously issue warrants to make the
rights share offering more attractive to existing shareholders.
(hen)