Pan Brothers cooperates with Batik Keris Group

JAKARTA (JP): PT Pan Brothers Tex, a publicly-listed textile manufacturer of the Pan Brothers Group, has announced that its founder, PT Pancamitra Ekadaya, has signed a share purchase agreement with the Batik Keris Group.

Pan Brothers Tex reported in a statement to the Jakarta Stock Exchange (JSX) yesterday that under the agreement, Batik Keris will acquire a 65 percent stake in Pancamitra Ekadaya.

"This transaction is the beginning of cooperation between the Pan Brothers Group and the Batik Keris Group. It will also involve Pan Brothers Tex, a public company currently controlled by Pancamitra Ekadaya," the statement said.

"The two parties are expected to see stronger performances with this cooperation. And the result will come in the first semester of 1997," the statement added.

The Batik Keris Group is widely known for its Batik products.

The statement was made in relation to a widespread rumor on the JSX that Batik Keris might have proposed a "tender offer" on Pan Brothers Tex shares.

Early this week, the prices of Pan Brothers Tex shares rose sharply, by 45 percent from Rp 750 on July 8 to Rp 1,175 on July 10.

Within two days, Pan Brothers Tex recorded total transactions of Rp 33.1 billion with 32.2 million shares changing hands.

Following such a sharp price increase, the JSX management asked Pan Brothers Tex to confirm the rumor.

"We have yet to get any "tender offer" proposal. But it might be true that the signing of the purchase agreement between the two parties had boosted our share prices," Pan Brothers claimed.

Although the company's statement was distributed to stock traders yesterday morning, the prices of Pan Brothers Tex shares went up another four points yesterday to Rp 1,275 with 20 million shares changing hands.

Commenting on why the JSX didn't suspend Pan Brothers Tex shares, a JSX director, Mas Achmad Daniri, said; "We did not do that because we need detailed information from the company."

"Moreover, in our view, suspension is the last resort," Daniri added.

"We hope that public companies will disclose any information as soon as possible so that investors will get the same access to the information."

Daniri also acknowledged that the key issue in the case of Pan Brothers Tex is transparency of information.

Commenting on the price increase, Pan Brothers Tex said in another statement: "It shows investors' confidence in our efforts to boost our performance." (alo)