PT Lampung to buy three firms

JAKARTA (JP): PT Lampung Pelletizing Factory, a subsidiary of PT Dharmala Agrifood, will take over three commodity processing companies as part of the retructuring program of its parent firm.

The takeover plan was approved in a shareholders meeting yesterday.

Dharmala's corporate secretary Dicky Djamil said Lampung Pelletizing would acquire the three companies -- Mansur Import Export Company, PT Dharmala Lampung and PT Palembang Jaya -- for Rp 26 billion (US$10.79 million).

"The internal acquisition is a part of the company's consolidation measures and is expected to improve the balance sheet," Dicky said.

He said the three companies, which are also part of the Dharmala Group, to be acquired were prominent in their sectors and each had between 20 and 40 years experience.

Dicky said the acquisition was expected to double Dharmala Agrifood's sales to Rp 543 billion this year from around Rp 270 billion in 1996.

During yesterday's meeting, Dharmala Agrifood shareholders also agreed to inject funds totaling Rp 28.04 billion into PT Lampung for the acquisition and operational costs.

"About Rp 8.5 billion will come from Dharmala equity and the remainder from Dharmala savings," he said.

Dicky said Lampung Pelletizing's assets now reached Rp 25 billion, with equity totaling around Rp 11 billion.

Dharmala Agrifood, a member of Dharmala Group, produces animal feed components.

Dicky said Dharmala Agrifood's net profit was expected to decline to Rp 13 billion this year.

Last year, the company's net profits were around Rp 18 billion, up from Rp 8.47 billion in 1995, he said.

The drastic increase was the result of a merger of subsidiary PT Artistry Terpadu Feedmill with San Miguel Foods International, Dicky said. (02)