May 5, 2011

TSPC surges on takeover speculation

Drug maker PT Tempo Scan Pacific Tbk (TSPC) has surged 23.65% less than 2 weeks on a speculation that the company has been sold to an Indonesian conglomerate.
Before the speculation mushrooming, Tempo Scan stood at Rp1,700 per share. But, it yesterday ended at the level of Rp2,125 per share.
"I was told by my source that Kartini Muljadi family has entered into an agreement to sell majority stake in Tempo Scan with one of Indonesian conglomerate. But, i couldn't disclose the name," a source said.
The conglomerate has agreed to acquire majority stake at Tempo Scan at Rp2,200-Rp2,300 per share, which will drive an obligation to set a cash offer for the remaining shares.
However, it is not easy to obtain confirmation from the company as it is known having lack of openness.
Tempo Scan is an arm of The Tempo Group which is founded by one of Indonesian richest businesswoman Kartini Muljadi. Tempo Group is led by Kartini's son, Handojo Selamet Muljadi as the President Director.
The group has four main businesses, pharmaceutical, personal care and cosmetics, distribution, and supporting division.

Disclosure: No position at the stock mentioned above.

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