Tri Polyta, Chandra Asri Reportedly Plan to Merge

Indonesia Finance

Saturday, 25 September 2010 15:47

Theindonesiatoday.com -- The country’s largest polypropylene resin producer PT Tri Polyta Indonesia Tbk, owned by business tycoon Prajogo Pangestu, may announce in the near future of its plan to merge with affiliated company PT Chandra Asri.

“Tri Polyta could possibly announce its merger plan with Chandra Asri next week,” Bisnis Indonesia quoted an unnamed source as saying on Friday. The company has appointed Deutsche Bank and DBS as financial advisors of the merger plan.

The source said Tri Polyta will become a surviving entity of the merger.

Both Tri Polyta and Chandra Asri are producers of ethylene, propylene and polietylene, controlled by PT Barito Pacific Tbk (BRPT), owned by Prajogo Pangestu.

Barito controlled 77.93 percent shares of Tri Polyta since August 5, 2008. It bought Tri Polyta shares in two stages – bought 75.95 percent shares were bought on June 27, 2008 and additional shares were bought on August 5 from secondary maret.

Barito also controls majority shareholding of 70 percent of Chandra Asri since December 13, 2007.

Prajogo lost control in those two companies following the monetary crisis in 1997-1998, however, overtime Prajogo gained control of the two companies.

As a result of financial trouble, Tri Polyta shares were delisted from New York Stock Exchange on March 23, 2000. The company listed on the New York Stock Exchange on March 14, 1996.

Tri Polyta listed on the Indonesian Stock Exchange on June 4, 1996, but was delisted again on February 3, 2003. On May 22, 2008, the company re-listed on the Indonesian Stock Exchange.

In 2009, Tri Polyta posted net profit of Rp483 billion, a sharp jump after posted net loss in previous year of Rp13.75 billion. The net profit was supported by a rise of sales to Rp4.98 trillion from Rp4.3 trillion.

In the first quarter this year, Barito Pacific, Tri Polyta's parent company, posted sales of Rp5.36 trillion, surged two-folds from Rp2.64 trillion in the same period last year. Its operating profit rose to Rp312 billion from Rp217.99 billion. A surge in top line boosted its net profit to Rp117.07 billion from Rp87.66 billion. Majority of Barito’s sales were contributed by the two petrochemical companies.

(roffie.kurniawan@gmail.com)

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