Sinar Mas assets may aid Amcol

JAKARTA (JP): Business tycoon Eka Tjipta Widjaja is considering injecting part of his Sinar Mas Group's assets into the beleaguered Amcol Holdings.

Eka said that the transfer of group assets into the Singapore- based Amcol is part of a deal currently being negotiated.

"We have yet to decide what subsidiaries will be injected into Amcol," he was yesterday quoted as saying by Bisnis Indonesia.

A Singapore-based newspaper reported last week that Sinar Mas would include some of its Indonesian palm plantations and a noodle plant in China as part of a US$2 billion injection into Amcol.

Eka said that the value of fixed assets to be poured into the Singaporean company would not reach $2 billion.

"It won't be that large," he said.

According to Reuters, Amcol was placed under interim judicial management in July after a Price Waterhouse report found that the company had serious cash flow problems and difficulties in meeting its financial obligations.

In August, the judicial managers announced an agreement with the Sinar Mas Group to rescue Amcol through the creation of a new company which would take over Amcol.

The planned inclusion of Sinar Mas' assets in the financially troubled Amcol is unlikely to involve the business group's subsidiaries listed on the Jakarta Stock Exchange.

One of the group's listed subsidiaries, Duta Pertiwi, told the Capital Market Supervisory Agency (Bapepam) last week that it would not participate in the Amcol deal.

"Duta Pertiwi has informed us that Sinar Mas Group won't inject Duta Pertiwi's assets into Amcol Holdings," an executive of the capital market watchdog said.

He said that Sinar Mas other listed units, such as SMART Corporation, had also informed Bapepam that they would not become involved in the deal with the Singaporean company.

Businessman Henry Pribadi yesterday denied a Bisnis Indonesia report that he would sell his 17.92 percent share in Amcol.

The newspaper reported on Monday that Henry, the single largest shareholder and managing director of Amcol, had put his stake up for sale. (hen)