IBRA Head: Texmaco Will Not Be Sold Off Below Floor Price
6 February 2004 23:45 WIB
TEMPO Interactive, Jakarta:Indonesian Bank Restructuring Agency (IBRA) Head Syafruddin Temenggung has said that he would not sell the state assets, including PT Texmaco’s assets, below the floor price. “We have proven what we said. If the assets do not meet the floor price, we will never sell them,” said Temenggung following a working meeting with the House of Representatives (DPR) Commission on Banking and Finance at the legislature complex, Jakarta, on Thursday night (5/2). IBRA is offering credit assets belonging to Texmaco worth Rp29.05 trillion in the seventh stage of Credit Assets Selling Program (PPAK). Although the Texmaco assets have been offered to the public four times, IBRA has been unable to sell them off so far.However, Temenggung promised not to decrease the price of Texmaco’s shares. “We will never have a fire sale of the shares,” he stated. Temenggung cited the divestment program of Lippo Bank, which was finally won by the Swiss-Asia Global Consortium. In this divestment program, IBRA insisted on using the floor price of Lippo Bank’s shares of Rp591.5 per share. “I have shown to the public that I never sell off IBRA’s assets below the floor price so I do not need to make any guarantees,” said Temenggung. Texmaco was already offered in the Strategic Assets Selling Program (PPAk) stages one, two and six. Texmaco’s credit assets, in the form of exchangeable bonds, are worth Rp29.05 trillion. The parent firm of Texmaco, PT Bina Prima Perdana, which is active in the textile business, has issued bonds amounting to Rp5.28 trillion and US$ 284.83 million. Meanwhile, the other parent firm, PT Jaya Perkasa Engineering, which is active in the in heavy equipment business, has issued bonds amounting to Rp5.71 trillion and US$ 1.47 billion. IBRA will not provide new loans to Texmaco and Temenggung is convinced that the agency remaining term of office could be used to sell off IBRA assets at a good price. “If the right investor comes along, why shouldn’t we sell the assets?” he said. Yandi MR - Tempo News Room
