Sep 27, 2010

Chandra Asri & TPIA assets US$1.5 bio

The merger between PT Tri Polyta Indonesia Tbk (TPIA) and PT Chandra Asri is estimate to generate a combined revenue amounting Rp17 trillion-Rp20 trillion per year along with US$1.5 billion (Rp13.35 trillion) assets.
Director and the Corporate Secretary of Tri Polyta Survandi said that such merger will not only grant certain financial benefits but also operational benefits.
“The vertical merger is expected to produce a synergy for both companies. The total asset generated from such merger may reach US$1.5 billion, of US$1.2 billion is Chandra Asri’s and the remaining US$280 million is Tri Polyta’s. We expect such merger to be effective by 1 January 2010,” he said.
Referring to the company’s performance as per June 2010, the merger pf Tri Polyta, the maker of 360,000-ton polypropylene per year, and Chandra Asri, the producer of polypropylene, ethylene and polyethylene, may result in Rp17 trillion-Rp20 trillion total sale per year.
Tri Polyta, as he added, may book Rp5 trillion revenue per year, while Chandra Asri may post three times higher revenue than Tri Polyta.
With regard to gross profit, such joint venture controlled by PT Barito Pacific Tbk (BRPT), the holding company owned by Prajogo Pangestu, may generate Rp1.5 trillion gross profit.
“Tri Polyta may contribute Rp700 billion-Rp800 billion gross profit per year,” said Suryandi. Since 5 August 2008, Barito controlled 77.93% shares of Tri Polyta.
Barito also effectively controlled 70% shares of Chandra Asri in 13 December 2007. Based on Barito’s financial statement in 2009, the revenue contribution from the petrochemical business line may reach Rp14.27 trillion, while the company’s total revenue reached Rp14.39 trillion.
Chandra Asri’s Corporate Secretary, Suhat Miyarso, added the decision to hold a merger was established after undertaking a tight due diligence process.
“Such process has been done since July 2010. The due diligence process has also considered various kinds of aspects including the interest of the employees, creditors, shareholders and other stakeholders from both companies. One thing for sure, the detailed performance of Chandra Asril shall be revealed by today,” he said.
Disclosure: No position at the stock mentioned above.  

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