Tempo plans to buy Indofarma unit

JAKARTA: Publicly listed pharmaceutical company PT Tempo Scan Pacific said on Friday that it planned to acquire a 51 percent stake in PT Indofarma Global Medika (IGM), a unit of troubled state-controlled pharmaceutical firm PT Indofarma.

In a statement to the Jakarta Stock Exchange (JSX), Tempo Scan said that it was currently in talks with Indofarma over the plan. However, thus far, no binding agreement has been signed between the two companies.

Tempo Scan is known as the producer of Bodrex and Bodrexin tablets for headache, and food supplement Hemaviton.

Indofarma plans to sell IGM to help increase its operational efficiency after the company booked a widening loss in its 2003 operation. Indofarma recorded an audited loss of Rp 130 billion (US$15.2 million), up from Rp 60 billion in 2002.

Its sales also plunged to Rp 498 billion from Rp 687 billion.

IGM engages in drug distribution businesses and health equipment supplying activities. -- JP

;JP;REN; ANPAf..r.. Brief-acquisition-Buana UOB to complete buying Buana stakes in May JP/14/

UOB to complete buying Buana in May

JAKARTA: United Overseas Bank Ltd. (UOB), Singapore's second largest bank, may complete its plan to buy a 23 percent stake in Bank Buana, Indonesia's 11th largest bank in terms of assets, in May after conducting a due diligence on the bank.

Buana director Pardi Kendy said that UOB was currently in the process of auditing the bank before wrapping up the purchase agreement.

"We hope that the purchase can be concluded next month," said Pardi after attending the bank's general shareholders meeting on Friday.

UOB earlier said that it had allocated around Rp 774 billion (US$91 million) to buy the shares from PT Sari Dasa Karsa, a holding company which owns 62 percent of Buana.

As of December last year, Buana has total assets of Rp 14.3 trillion and a net income of Rp 222 billion. The return on equity and on assets stood at 17.0 percent and 2.3 percent, respectively.

In the aftermath of the financial crisis of 1997, out of the 15 largest banks in Indonesia, only a few banks managed to survive without a government bailout and Bank Buana is one of them. -- JP

;JP;REN;cd ANPAf..r.. Brief-Inco-profit Inco profit surges almost 500% JP/14/

Inco profit surges almost 500%

JAKARTA: PT International Nickel Indonesia (Inco), a local unit of the world's second-largest nickel producer, Inco Ltd., said its first-quarter profit skyrocketed by almost 500 percent on higher nickel demand and prices.

In a media statement on Thursday, Inco said that profit in the first quarter jumped to US$73.4 million from $15 million in the same period last year.

"The strong rise in nickel prices enhanced earnings as Inco's average realized price in the first quarter rose 87 percent from the same period in 2003 and 35 percent from the fourth quarter of 2003," said Inco chief executive officer Bing R. Tobing.

The company has benefited from a high nickel demand from China and the United States, amid a limited supply of the product on the market. Global demand this year is estimated to reach around 1.34 million metric tons, while the available supply is only about 75,000 metric tons.

Inco shares on the Jakarta Stock Exchange surged by Rp 1,100 to Rp 36,700 on Friday's trading. -- JP

;JP;REN; ANPAf..r.. Brief-Antam-shares Antam cancels right issue plan JP/14/brief

Antam cancels rights issue plan

JAKARTA: State-controlled mining company PT Aneka Tambang (Antam) announced on Friday that it would cancel its plan to issue new shares via a rights issue in May, after failing to complete the necessary requirements for the plan.

In its report to the Jakarta Stock Exchange, Antam said it would need more time to complete the necessary procedures needed for the rights issue. Antam did not provide any detail on the new schedule for the issue.

Antam had previously planned to issue new shares worth around US$31 million to the public, on the tail of the government's plan to sell 14 percent of its shares in the company through the stock market in the second semester of this year.

The government currently holds 65 percent of the company's shares, with the remaining 35 percent owned by the public. -- JP.