Aug 24, 2010

Astra to complete buyout ASF in Sept.

PT Astra International Tbk (ASII) plans to complete the acquisition of 100% GES in September 2010. 
The aim is to increase its stakes in Astra Sedaya Finance (ASF) from currently 53% to 100%. Seller of the 47% stakesis GE Capital which is the strategic partnerof Astra in Astra Sedaya. 
Chief Corporate Communication of Astra Arief Isnanto said the company is estimated to spend Rp2 trillion cash for the acquisition.
In a morning notes, CLSA said Astra Sedaya Finance is the largest car financing companies in Indonesia with total loan book of Rp9.1 trillion (+44% yoy), and equity value of Rp1.89 trillion. 
Note that aside from the Rp9.1 trillion loan book, Astra Sedaya also channel another Rp8.3 trillion loan to consumer under joint financing without recourse with 3rd parties. Astra Sedaya accounted for 2.1% of Astra Intl consolidated net profit in FY09. Additional 47% stakes acquisition will add less than 2% to Astra Intl profit.

Disclosure: No position at the stock mentioned above.

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