Salomon, Bakrie tie up

Salomon, Bakrie tie up

JAKARTA (JP): Salomon Brothers, a major American investment bank, and PT Bakrie Securities have agreed to establish a joint venture that will engage in international capital raising and financial advice.

Siddharta Moersjid, the communications manager of the widely diversified Bakrie Group, said yesterday that the joint venture is subject to certain conditions, which includes government approval.

He said that the tie-up deal supplements a separate joint cooperation agreement recently reached with Bakrie Securities. Salomon Brothers supports PT Bakrie Securities in Jakarta in providing assistance to Indonesian issuers wanting to raise funds through foreign investors.

Bakrie Securities is wholly owned by the PT Bakrie Finance Corporation, one of the Bakrie Group subsidiaries listed on the Jakarta Stock Exchange.

The Bakrie Group, with total assets of around US$1.5 billion, also operates in the infrastructure support business, plantations, telecommunications, banking, insurance, money brokerage, mining property and mass media.

Salomon Brothers has been active in Indonesia since 1990. It has since acted as a financial advisor and lead manager to assist in the raising of around US$4 billion in capital through project financing, fixed income and equity transactions.(hen)