Sep 25, 2010

Tri Polyta & Chandra Asri to merge

Two petrochemical companies PT Tri Polyta Indonesia Tbk (TPIA) and PT Chandra Asri, both controlled by Indonesian tycoon Prajogo Pangestu, aim to merger its business, paving a way to boost its efficiency as well as internal restructuring.  
A source familiar with the matter said the marger is advised by two stellar foreign investment banks Deutsche Bank and DBS.
"Tri Polyta will be a survival company. Chandra Asri may swap shares with Tri Polyta," the source told Insider Stories.
Since August 5 2008, PT Barito Pacific Tbk (BRPT), holding company of Prajogo, has controlled 77.93% stakes in Tri Polyta. Barito has controlled 70% stakes in Chandra since December 13 2007. 
Petrochemical business from both companies contributed Rp14.27 trillion or 99% of Barito's 2009 consolidated revenue of Rp14.39 trillion.
Barito President Director Loeki Sundjaja Putera confirmed that Tri Polyta and Chandra Asri are underway to merge. "It is correct the merger is being processed."
In the last 3 days, Tri Polyta stocks went up 25.83%, sending Rp2.37 trillion market capitalization, while Barito rose 9.56% in the last 2 days, boosting its market capitalization to Rp8.66 trillion. Tri Polyta rose 6.56% to Rp3,250 per share and Barito inched up 2.48% to Rp1,240 per share.

Disclosure: No position at the stock mentioned above.

Print This Article

No comments: