The Indonesian Bank Restructuring Agency (IBRA) and PT Holdiko Perkasa (Holdiko) on Monday started another sale, this time its 97.69% shareholding in PT Kerismas Witikco Makmur (Kerismas).
Kerismas is one of Indonesia’s major manufacturers of galvanized iron sheets (GIS), producing both plain and coloured GIS primarily for use as roofing materials, with production locations in Jakarta and Manado. Kerismas also produces construction materials such as wall cladding, and floor plates for pouring reinforced concrete floors.
Included in the sale package is Rp127.3 billion ($12.9 million) of liabilities that Kerismas owes to Holdiko. Another part of this offering is Holdiko’s indirect 50.14% interest in PT Semarang Makmur, a subsidiary of Kerismas, another GIS manufacturer located in Semarang, Central Java.
“We have decided to dispose of Holdiko’s ownership of Kerismas through a strategic sale,” says Dasa Sutantio, IBRA’s director for Asset Management. “We are confident that the strategic sale of Kerismas, a company with an established position and potential for future growth in its industry, will receive a good response from the market. The method of disposal will also ensure that the maximum proceeds will be obtained.”
“Kerismas was initially planned for disposal last year,” explains Scott Coffey, director of Holdiko. “But the sale process has been rescheduled for inclusion in our year 2001 asset disposal program. Together with the sale of our stakes in Indocoal, Indomaret, Indosiar, Sulfindo and Kerismas, Holdiko aims to raise over Rp1 trillion from the sale of our these spillover assets,” he adds.
In early March 2001, together with IBRA, Holdiko plans to announce an additional list of assets for disposal this year. The disposal method will be a two-stage selection process to determine the winning bidder. Preliminary information will be distributed to potential investors, to be followed by a preliminary bidding period, a due diligence process, data room and site visits. The disposal process is scheduled for completion by the end of May 2001.
Holdiko was established in relation to the settlement between the Salim Group and IBRA with regard to loans extended by PT Bank Central Asia (BCA) to companies affiliated with the Salim Group. As part of the settlement agreement with IBRA, the Salim Group transferred shares and assets in more than 100 operating companies to Holdiko.
As a direct and indirect shareholder of these companies, it is Holdiko’s responsibility to supervise each individual company with the aim of disposing of a sufficient amount of these shareholdings. Holdiko will subsequently direct the disposal proceeds to IBRA as part of the settlement agreement.
IBRA is an agency of the government of Indonesia established at the beginning of 1998 as the primary agency to oversee the rehabilitation of the financial sector. IBRA is authorized to take over and control troubled banks and dispose of their assets and collateral.
