PT Tigaraksa sells subsidiary at $13m

JAKARTA (JP): PT Tigaraksa Satria, a conglomerate of four companies engaged in the production and distribution of consumer goods, has sold its wholly-owned subsidiary, PT Sugizindo, to PT Sari Husada for Rp 28.35 billion (US$13.13 million), an executive of the company said yesterday.

Elvie Mulia, director of the company, said during the annual shareholders meeting here yesterday that the merger of PT Sugizindo with PT Sari Husada, both infant formula manufacturers, was aimed at improving production efficiency.

Mulia said Tigaraksa had earlier increased its shareholdings in PT Sari Husada from 61.6 percent to 68.6 percent.

At the meeting, Tigaraksa reported a 44 percent increase in its gross sales, including those of its subsidiaries, to Rp 321.9 billion last year from 1992.

Its net profits also rose over the same period by 30 percent to Rp 16.6 billion, thereby increasing its earnings per share by 19.2 percent to Rp 335.

PT Tigaraksa Satria's subsidiaries include PT Tira Fashion, a garment producer as well as PT Tiga Husada Ekatama and PT Sari Husada.

The shareholders meeting agreed to management's proposal for a Rp 125 dividend per share to be paid in August.

Mulia noted that the mass resignation of two directors and 150 other executives from Tigaraksa last year had not adversely affected the company's performance, as could be seen in its financial results.(yns)