PT Tri Polyta Indonesia Tbk (TPIA), the country's largest manufacturer of polypropylene resins, said on Saturday it will acquire petrochemical firm PT Chandra Asri in a share-swap deal worth about US$1.2 billion.
The combined companies, both of which are controlled by Indonesian tycoon Prajogo Pangestu through holding company PT Barito Pacific Tbk (BRPT), will create Indonesia's biggest listed petrochemical firm.
"We expect the deal to be completed by January 1 2011," Suryandi, a director at Tri Polyta, as quoted by Reuters on Saturday.
Barito Pacific owns 77.9% of Tri Polyta as well as 70% of Chandra Asri. Barito will own a 71.6 % stake of the combined firm after the deal.
Suryandi said Tri Polyta will issue 2.93 billion new shares to Chandra Asri's shareholders in exchange of the firm's US$1.2 billion assets.
He declined to give an indicative price for the new shares. A source close to the deal, who declined to be identified, said the company may offer the shares at Rp3,579, a 10% premium to the firm's closing price on Friday and valuing the deal at Rp10.5 trillion (US$1.17 billion). The company has appointed Deutsche Bank and Singapore's DBS Group.
No position at the stock mentioned above.
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