Tempo won't buy Indofarma unit

JAKARTA: Publicly listed pharmaceutical company PT Tempo Scan Pacific decided on Wednesday to call off its plan to acquire health care distribution firm PT Indofarma Global Medika (IGM), a unit of ailing state-owned pharmaceutical company PT Indofarma.

In its report to the Jakarta Stock Exchange, Tempo said that the decision was made after the company received a valuation report from an independent appraiser, the Center for Investment and Business Advisory.

"After the board of directors discussed the valuation report, the company decided not to press ahead with the plan," said Tempo in a statement, without elaborating further on the price set by Indofarma for IGM.

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