Two groups submit bid for IBRA's Astra stake

Two groups submit bid for IBRA's Astra stake

JAKARTA (JP): Only two of the three shortlisted investor
consortia submitted final bids for the Indonesian Bank
Restructuring Agency's (IBRA) 45 percent stake in PT Astra
International on Thursday, and the winner will be announced on
Friday, one day ahead of schedule.

Only moments before receiving the bid documents, IBRA chairman
Cacuk Sudarijanto said that the agency had decided to announce
the winner on Friday instead of Saturday as originally scheduled.

"This new schedule will allow the winner to call its bank in
New York," Cacuk added.

One of the three shortlisted bidders, the consortium led by
Lazard Asia Fund, made a last minute decision to submit a joint
bid with Singapore's Cycle & Carriage Ltd. consortium. This group
includes Bhakti Investama and Batavia Investment Management.

The second bidder, led by Newbridge Capital of the U.S.,
includes PT Saratoga Investama Sedaya, Chase Asia Equity
Partners, PT Nusantara Investment Fund, and Colony Capital.

Gilbert Global Equity Partners, which was previously the co-
leader of the Newbridge consortium, dropped out of the bidding
reportedly due to timing constraints.

The first group of bidders declined to say why they decided to
submit a joint bid for the 1.04 billion Astra shares, but an
informed source said that both Lazard and Cycle & Carriage
encountered difficulties raising such a large amount of cash in
such a short period of time.

"We definitely need the money (at the latest) by March 28,"
Cacuk added.

The bid documents were submitted to a notary and the
presentation ceremony was attended by representatives of the mass
media, the World Bank and the International Monetary Fund.

"I assure you that the transaction will be fair and
transparent. The bid documents will be opened at the same time
tomorrow," he said, apparently in a bid to alleviate worries
about unfair conduct by IBRA.

"There will be no intervention from (people) higher than me,
not even from the President. It will be entirely IBRA business,"
he added.

Cacuk said that price would be the most important factor in
selecting the winner. Astra shares closed flat on Thursday at Rp
3,725.

Cacuk made the comment amid speculation that the government
favored the Newbridge-led consortium which includes Saratoga
Investama, a consulting company controlled by the Soeryadjaya
family, the founder of Astra who had to "surrender" control of
the company in 1993 to investors linked to former president
Soeharto.

The Soeryadjaya family is also known to be close to President
Abdurrahman Wahid.

Edwin Soeryadjaya of Saratoga declined to comment on this. He
only said, "We're pleased to submit our bid."

Newbridge, together with Gilbert, was appointed the preferred
bidder for the Astra stake last September, but the transaction
failed following acrimonious debates with Astra management led by
Rini Soewandi (since replaced) and controversy over alleged lack
of transparency and the contentious issue of due diligence.

Cacuk said that as part of the effort to safeguard fairness
within the bidding process, the Government of Singapore's
Investment Corp., had not been allowed to participate in the due
diligence process, and had not been allowed to review the terms
and conditions submitted by the two bidders.

"This is because the Singapore investment company was included
in both the Newbridge consortium and the Lazard consortium," he
added.

The consortia have just completed a three-week due diligence
on Astra, the country's largest carmaker, that also has large
investments in plantations, heavy equipment, motorcycle and
finance industries.

Cacuk dismissed reports that Malaysia's Kumpulan Guthrie, not
included in the shorlist, had made a last minute bid.

"Until now, I have not received any paper (bid) from them," he
said.

Cacuk added that the government would allow the winning bidder
to pay in U.S. dollars based on Rp 7,460 per dollar, the middle
rate prevailing on Wednesday.

Astra is considered the jewel among IBRA's prime assets and
proceeds from the sale will contribute to the Rp 17 trillion
revenue target to be raised by the agency in the current fiscal
year ending March 31.

Cacuk declined to say how much cash he expected from the
transaction but analysts said IBRA expected at least $500
million. The agency has so far raised around Rp 11 trillion.

The Astra sale will be the first high profile deal to be
completed by the agency since its botched transaction with
Standard Chartered Bank of Britain for Bank Bali late last year.

Cacuk said that a successful completion of the Astra deal
would help revive confidence in the country's ailing economy.

Meanwhile, Astra President Theodore P. Rachmat, a cousin of
Williamn Soeryadjaya, said he would welcome any winning bidder
for the Astra stake.

"May the best bidder win," he said. (rei)