Regulator, Creditors Approve Tri Polyta-Chandra Asri Merger

Industries

Friday, 22 October 2010 20:47

Theindonesiatoday.com - The Capital Market and Financial Institution Supervisory Agency, Bapepam-LK, and creditors support the planned merger of PT Tri Polyta Tbk (TPIA) and PT Chandra Asri, media reported on Friday.

Both companies are are producers of ethylene, propylene and polietylene, controlled by PT Barito Pacific Tbk (BRPT), owned by tycoon Prajogo Pangestu.

Anis Baridwan, Bapepam's head of real sector financial reporting inspections, said Bapepam as well as the Indonesian Stock Exchange (IDX) support the merger as all the process of merger had met the capital market regulation. "No specific issue occured on the merger process," he was quoted as saying by detikfinance.com.

Bisnis Indonesia also reported today that two creditors of Tri Polyta, PT Bank Danamon Tbk and PT Bank DBS Indonesia, had in 15 October 2010 given the consent letter or approval for being mergered with Chandra Asri.

While two creditors of Chandra Asri, DBS Bank Ltd and PT Bank Central Asia Tbk, had also given approval.

Tri Polyta and Chandra Asri will hold shareholder extraordinary general meeting in 27 October 2010 to gain approval for the merger under the new name PT Chandra Asri Petrochemical.

The combined assets of two companies is expected to reach US$1.5 billion, of which US$1.2 billion is Chandra Asri's assets. While the combined revenue could reach Rp17 trillion to Rp20 trillion per year.

The IDX had earlier said it was considering to delist shares of PT Barito Pacific Timber Tbk (BRPT) or shares of Tri Polyta as impact of the planned merger of Tri Polyta and PT Chandra Asri.

Eddy Sugito, IDX's director, said IDX will study the chain listing of two companies to decide whether one of them is needed to be delisted.

The case of chain listing arises when a listed subsidiary’s revenue accounts for the greater part of its listed parent company’s revenue.

Barito holds 77.93% stake in Tri Polyta and 70% stake in Chandra Asri. While Chandra Asri is the biggest supplier of raw material for Tri Polyta. (hans@theindonesiatoday.com)

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