Ometraco sells subsidiary for expansion

JAKARTA (JP): Publicly listed PT Ometraco Corporation has agreed to sell its pharmaceutical company, PT Supra Usadhatama, to PT Tempo Scan Pacific and PT Indonesian Pharmaceutical Industries to raise funds for its expansion project.

Ometraco signed a conditional sales and purchase agreement Saturday to sell Supra, including its subsidiary PT Supra Ferbindo Farma, for Rp 192 billion (US$80 million).

The sales will be effective April 22 this year.

Ometraco president Boyke Gozali said his company decided to sell Supra, maker of over-the-counter pharmaceuticals, because the sales provided good value for Ometraco's shareholders.

"The sales proceeds would provide additional resources to expand our businesses especially the consumer food and the financial services sectors," Gozali said.

The funds would be used to acquire and invest in local brands to expand the company's portfolio and to further build the distribution network of food produced by the company, he said. Ometraco also has a line of confectionery and drink products.

The company would also invest the funds in building a branch network to provide consumer financing for electronic products and motorcycles, he said.

"We have signed a joint venture to provide electronic products financing and will soon provide motorcycle financing in conjunction with local dealers," Gozali said.

The company also planned to set up a life insurance company as part of its program to become an integrated financial service provider, he said.

Ometraco, listed on the Jakarta Stock Exchange, is owned 63 percent by the Santosa family; Morgan Stanley Capital Partners own 9.7 percent.

Beside consumer food and financial services, the corporation operates infrastructure and poultry businesses.

The company owns a 51 percent stake in the publicly listed PT Japfa Comfeed Indonesia, 69 percent in PT Multibreeder Adirama Indonesia, 51 percent in PT Bank Tiara Asia, and 52 percent in PT Trafindo Perkasa. (02)