PT Sierad Produce to offer shares this year
PT Sierad Produce to offer shares this year
JAKARTA (JP): PT Sierad Produce, a whole-subsidiary of the
publicly-listed PT Anwar Sierad, will go public late this year,
offering approximately 40 percent of its total shares.
Fadel Muhammad, Anwar Sierad's chief commissioner, told
journalists here yesterday that the public offering is aimed to
strengthen the Sierad Group's position in the food business.
"We see a prospective growth in the food division. That's why
we prefer Sierad Produce to other subsidiaries to go public,"
Fadel added.
Sierad Produce currently operates in feed production, chicken
slaughtering and chicken-based fast food.
Fadel said that the offering's proceeds will be used to
finance the expansion of the food division.
He said that in July last year, Sierad Produce issued
convertible bonds worth US$19.25 million to strengthen its
working capital to finance the construction of a hatchery in
Sukabumi, West Java, two feed mills in Lampung and Surabaya, East
Java, and several new Wendy's restaurant outlets.
"We have a vision to be an integrated food company. In a few
years, you may see food products under Anwar Sierad's brand name
just like Indofood," Fadel said.
He said that the details of the public offering can not be
disclosed now, "But one thing for sure, it will be carried out
late this year."
Sierad Produce has entered the fast food business since
December 1994 by acquiring a 90-percent stake in Wendy's
Citrarasa, which holds the exclusive Wendy's franchise for
Indonesia.
In 1995, Wendy's restaurants contributed 8 percent to Anwar
Sierad's consolidated net sales.
Fadel also said yesterday that Anwar Siearad's shareholders
have endorsed the distribution of dividends of Rp 35 (1.48 U.S.
cents) per share, totaling Rp 4 billion.
Anwar Sierad's president, Budiardjo Tek, said that the
management has projected consolidated net sales of Rp 475 billion
and net profits of Rp 35 billion this year, as compared to last
year's figures of Rp 345 billion and Rp 26 billion respectively.
One of the basic assumptions for such a projection is an
estimated decline in the prices of corn and soybean cakes, which
were very high last year.
Commenting on the prospect of day-old chicks this year,
Bidiardjo said that their selling price is determined by demand
and supply, or market force.
"It's nothing to do with the costs of production," he
contended.
It implies that a decline in the price of feed does not
necessarily mean an increase in day-old chick prices. (alo)