Pan Lonsum issues bonds worth $25 million
Pan Lonsum issues bonds worth $25 million
JAKARTA (JP): PT Pan London Sumatra Plantation (Pan Lonsum), owned by Andry Pribadi of Napan Group, Ibrahim Risjad of Risjadson Group and Henry Liem, announced yesterday that it has issued mandatory exchangeable bonds worth US$25 million.
"Prudential Asset Management Asia Limited (Pama) of the United States and Suez Asia of France have invested $20 million and $5 million respectively through the subscription of the bonds due 1999," president of Pan Lonsum, Ibrahim Risjad, said.
Ibrahim said that Pan Lonsum's subsidiary -- PT Perusahaan Perkebunan London Sumatra Indonesia (PPLSI) which was acquired from Harrisons and Crosfield Holding BV -- will also float its shares in February.
"The bonds are exchangeable into PPLSI shares upon its listing on the Jakarta Stock Exchange next year," said Ibrahim.
Pan Lonsum acquired PPLSI, which operates a 56,000-hectare plantation in Sumatra, and its marketing arm in Singapore for US$273 million last year.
Ibrahim said that the proceeds of the bond issuance and the planned share public offering will be allocated to partly repay a substantial portion of Pan Lonsum's bank borrowing incurred for the acquisition of PPLSI and further business expansion.
Pan Lonsum acquired PPLSI, which was set up by Harrisons & Crosfield in 1902, due to the expiry of its plantation operation permit.
"We acquired the management of PPLSI, not its assets," said Ibrahim.
Pama, the bond buyer, is the Asian investment and merchant banking arm of the Prudential Insurance Company of the United States, with its offices in Hong Kong, Singapore, Tokyo, Bangkok, Taipei, Kuala Lumpur and Jakarta.
Since its establishment here in 1993, Pama has made investments in several firms, including PT Siba Surya, PT Supra Usadhatama and PT Bakrie Investindo.
Suez Asia is a subsidiary of the Suez Group and dedicated to direct investment in Asia. Suez Group has offices in Singapore and Hong Kong.
"PPLSI, which produces rubber, cocoa, tea, coffee and palm oil, has established relationships with major customers in Asia, Europe and North America," said Pan Losum's director Andry Pribadi, who added that over 90 percent of its products are exported.
Andry said PPLSI also operates 15 crop processing facilities, including palm oil mills, sheet rubber and rubber chip factories, cocoa processors and tea and coffee plants.
President of PPLSI, Geoffrey Brown, said the company is also undertaking an expansion project in Palembang, South Sumatra, to develop palm oil and rubber plantations in a total area of 32,000 hectares.
Brown said that the company's net profit last year was recorded at Rp 39.3 billion ($17.2 million) from its sales revenues of Rp 141.7 billion.
Sales are expected to increase to Rp 185 billion and the profit to Rp 60 billion this year, he said.(kod)