Mar 11, 2011

Multistrada seeks strategic investor

PT Multistrada arah Sarana Tbk, Indonesia’s fourth biggest radial tire producer, currently is conducting a beauty contest for their financial adviser, namely HSBC, ING and Macquarie Securities.
One executive familiar with the matter stated the adviser selected by the producer of tire brand Achilles, Strada and Corsa will provide opinions regarding the development of the company.
“The adviser will provide us suggestion whether we should have rights issue or to look for strategic partner,” as he said to Bisnis.
When confirmed, Head of Multistrada’s Investor Relations Even Go claimed the company is still studying the selection as a way to support company’s development plan.
When mentioned about the 3 potential advisers, he cannot give the detail. HSBC is member of the bank consortium that provides US$181 million loan to Multistrada. The loan, which comes from export credit from Unicredit, HSBC, CIMB and BII, is allocated to fund capital expenditure and to expand production capacity.

Disclosure: No position at the stock mentioned above.  

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