Salim Group, Sumitomo acquires shares of cable firm

JAKARTA (JP): Sumitomo Electric Industrial of Japan and the Salim Group, a widely diversified business conglomerate, have acquired a 51 percent stake of PT Iki Indah Kabel Indonesia at Rp 44 billion (US$20.48 million).

"The takeover was made in a transaction through the block trading counter on the Jakarta Stock Exchange in March at the price of Rp 2,400 per share," an informed source said.

The source said that Sumitomo now holds a 41 percent stake and PT Perdanamulia Ekasakti, a Salim Group subsidiary, holds 10 percent.

He said Iki's founders now control 32 percent of the company's shares, leaving the investing public the other 17 percent.

Iki Indah Kabel has informed the Capital Market Supervisory Agency (Bapepam) about the block trading transactions, he said.

"The reports on the transaction will be officially submitted to Bapepam after an annual shareholder meeting here on May 11," the source was quoted by Bisnis Indonesia daily as saying.

Iki, manufacturer of alloy conductor cable and twisted cable, has a production capacity of 50,000 tons per annum.

The company plans to produce high tension electricity cables for the state-owned electricity company PLN in cooperation with Sumitomo, the source added.

Iki Indah Kabel posted an increase in its after-tax profit to Rp 18.18 billion last year from Rp 13.81 billion a year earlier. (fhp)