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UNTR hopes to raise stake to 50 percent in builder Acset
Publicly listed heavy equipment firm United Tractors (UNTR), a subsidiary of automotive giant Astra International, is looking to increase its stake in builder Acset Indonusa (ACST) to 50 percent amid the governmentâs infrastructure push
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Publicly listed heavy equipment firm United Tractors (UNTR), a subsidiary of automotive giant Astra International, is looking to increase its stake in builder Acset Indonusa (ACST) to 50 percent amid the government's infrastructure push.
United Tractors, which acquired a 40 percent stake in Acset earlier this year, has appointed its subsidiary, Karya Supra Perkasa (KSP), to bid for another 50.5 million shares of Acset in a mandatory tender offer ' some 10.1 percent of the company's enlarged capital. Acset will be offering up to 159 million shares.
The pricing for the shares has been set at Rp 3,250 (25 US cents), which means the transaction value could reach Rp 164.12 billion, United Tractors said in a published statement.
The tender offer ' amounting to 31.8 percent stake of the company and worth Rp 516.75 billion ' began on Tuesday and will conclude on April 29. Cross Plus Indonesia's 16.45 percent ownership and Loka Cipta Kreasi's 11.75 percent stake are excluded from the offering.
'The company is looking to take over Acset to diversify and expand our business, mostly to support United Tractors' main business,' the statement read.
United Tractors is looking to expand into the construction sector given the slowdown in heavy equipment in coal mining and services amid weak overall global commodity prices and the lack of investment and projects. Coal mining and services are major drivers of company revenue through subsidiary Pamapersada Nusantara.
The company saw its revenue increase by just 4 percent to Rp 53.14 trillion in 2014 year-on-year (yoy), despite a 27 percent increase in net profit to Rp 4.83 trillion, thanks to foreign exchange gains.
Acset, on the other hand, saw its revenue grow by around 34 percent yoy to Rp 1.35 trillion, while its net profit was up by around 5 percent to Rp 104.69 billion.
The administration of President Joko 'Jokowi' Widodo has slashed hundreds of trillions of rupiah in fuel subsidies that will be redirected to fund basic infrastructure projects, with construction among the priority projects. That has created new opportunities for builders across Southeast Asia's largest economy.
Acset is aiming to work on 40 percent of projects run by United Tractors following the acquisition, according to local media report.
Credit Suisse Securities Indonesia was pessimistic that the tender offer would run smoothly, given that the bidding prices were lower than Acset's current selling price.
Acset's shares touched Rp 5,450 apiece on Wednesday, up 4.81 percent from Tuesday's close. The stocks have soared by about 45 percent so far this year, outperforming the broader benchmark Jakarta Composite Index's (JCI) 4 percent gain.
'We reckon the public will not be selling their shares. The minimum 10.1 percent stake [desired by United Tractors] might be coming from Cross Plus Indonesia and Loka Cipta Kreasi ' two of the existing shareholders in Acset' which are actually excluded from the offer, the securities firm's analyst, Fordyanto Widjaja, said.
'JP/Anggi M. Lubis
