From pizzas to coal mining, firms change to survive
Paper Edition | Page: 13
The Indonesia Stock Exchange (IDX) says that several listed companies have proposed changes to their core businesses in an attempt to handle poor financial performances, after recording losses in previous years.
“We are in the process [of assisting the turnaround]. I have met one company, PT Karwell Indonesia, which is changing business to maritime logistics,” IDX corporate listing Hoesen said on Thursday. Karwell has been operating as a garment company.
Karwell’s move is just the latest in a line of similar moves by several companies, including the owner of Papa Rons and Amigos restaurant, PT Eatertainment International, to coal mining.
The company is working on its plan to hold a rights issue this month with about 820 million new shares sold to raise around Rp 410 billion (US$43.46 million) that would be used to acquire firms holding coal-mining concessions.
Cassava plantation company PT Citra Kebun Raya Agri has turned to mining and trading. Citra also hosts new shareholder, Singapore-based investment firm Redstone Resources Pte. Ltd., which took over a 65 percent stake in the company for Rp 1.11 trillion from previous owner Citra Group Pte. Ltd.
Hoesen said the changes were part of the companies’ efforts to handle its zero income.
“In general, we want to deal with companies whose shares are not active due to their poor performance,” Hoesen said.
Garment manufacturer Karwell obtained approval from its shareholders in May to change its name into PT Maharlika Indonesia. The company’s initial controlling shareholder, PT Karya Estetikamulia, has also sold all of its 53.23 percent stake in Karwell to Singapore-based investment company ICTSI Far East Pte. Ltd.
Besides taking over Karya’s shares, ICTSI Far East also bought 26.77 percent shares in Karwell from the market. Now, ICTSI Far East holds an 80 percent stake in Karwell.
Following the changes, Karwell is also planning to acquire a 100 percent stake in PT PMB Olah Jasa Andal, which is operating in the container loading business in Tanjung Priok port, Jakarta. Karwell obtained loans amounting $70 million from ICTSI Far East for the acquisition and purchase of six units of Tyred Gantry Crane.
Another company also in progress of business line changes is footwear manufacturer PT Surya Intrindo Makmur, which is proposing to venture into the property business.
Hoesen said that the bourse was also processing applications from companies that wanted to list their shares on the IDX. The companies are plantation firm PT Provident Agro, shipping company PT Pelayaran Nelly Dwi Putri and taxi company PT Express Transindo Utama.
—JP/ Raras Cahyafitri
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