Investor Daily
Saturday, 19 July 2008
Jakarta - Hary Tanoesoedibjo through PT Bhakti Investama Tbk (BHIT) and some of its affiliates are looking into divesting 38% shares in PT Citra Marga Nusaphala Persada Tbk (CMNP). Hary is currently in discussion with Bakrie Group as one of potential buyer.
Bhakti Investama will divest 19.3% of CMNP shares, PT Bhakti Securities 7.81% and 10.89% through some its affiliates. Total shares divested are 760 million shares with 60% premium above the market price.
On Friday (18/7) trading, CMNP was closed higher by Rp. 20 (1.6%) to level of Rp. 1,250. If taking into consideration that price, the sale price of the company is estimated at around Rp. 2,000 per share. Therefore, the sale value of 38% shares of Citra Marga reaches Rp. 1.52 trillion.
“Hary Tanoe does not want to sell those shares to other current shareholders because he failed to put this people in the Board of Director and Commissioner of Citra Marga” said a source of Investor Daily who knows the plan in Jakarta, Friday (18/7).
When tried to confirm, Hary Tanoesoedibjo did not answer his cell phone. The Short Message Service (SMS) sent was not replied. The same also happened with Managing Director of Bhakti Investama, Hary Djaja.
According to data Indonesian Stock Exchange, total shares of Citra Marga owned by Bhakti Investama and Bhakti Securities is 27.11%. This shareholding does not include affiliates which bought shares from the market. The other shareholders in this toll road operator are Hefferman International Ltd of 7.2%, Remington Gold Ltd 5.23% and Levan Daniar Sumampow of 5.13%.
In the Extraordinary General Meeting of Shareholders of the company held on the 30 June 2008, the shareholders approved honorable discharge of Mr. Daddy Hariadi from his position as Managing Director, I Ketut Mardjana as Director, Robby Sumampow as President Commissioner and Djohan Sutanto as Independent Commissioner.
Shadik Wahono who was previously independent commissioner now is Managing Director replacing Daddy Hariadi. Meanwhile, Daniel Goenawan Reso and Fernando Jeffry Sitohang were appointed as new directors.
In the Board of Commissioner, Robby Simampow as President Commissioner was replaced by Atmosardjono Subowo who holds also position of independent commissioner. Another new commissioners are Reza Herman Surjaningrat and Heru Darjudi Eko Putro. “Atmosardjono was said to be closed to Anthony Salim” said one source.
The predecessor commissioners who are still in their position are Danty Indriastuty Purnamasari who is the daughter of Siti Hardiyanti Rukmana and Levan Daniar Sumampow (the son of Robby Sumampow). “They have formed their own partnership outside the group of Hary Tanoe” said that source.
In the meantime, representative of Bhakti Investama who is still in place is Hartono Tanoesoedibjo.
That source added that the plan by Hary Tanoesoedibjo to sell 38% shares of Citra Marga was also due to financial condition of PT Citra Margatama Surabaya (CMS), subsidiary of the company that operates Waru – Juanda Airport toll road (12 km).
Citra Marga now owns 94.7% shares of CMS, while remaining of 5.3% is owned by PT Jasa Marga Tbk (JSMR). Currently, CMS only accounts monthly revenue of Rp. 2 billion. But, every month, the company is under obligation to pay loan interest of more than Rp. 10 billion. Total assets of CMS are almost Rp.14 trillion, while total debt reaches almost Rp. 1 trillion.
“Total assets and debt is consolidated into financial reports of Citra Marga and total capital of around Rp.400 billion is reported as investment. This critical condition certainly will disadvantage the company”, said him.
Director of Citra Marga Nusaphala Persada Hudaya Aryanto admitted that operation of Waru – Juanda toll road by CMS is not yet in its maximum. It is, according to him, because the traffic volume in the toll road that passes Surabaya – Sidoarjo is currently below the target. “From the initial projections of 53 thousand vehicles, it only reaches 15 thousand units per day” he said.
But, he added, the company will review solutions to improve the performance of CMS. The company has appointed consultant to prepare the review that should be finalized in September 2008. Therefore, the board of director should have another three months up to December to find the solutions for CMS.
Citra Marga will coordinate with Department of Public Works and Department of Transportation in relation to development of supporting toll road namely Waru – Mojokerto, Waru – Tanjung Perak and Surabaya Middle Eastern Ring Road. Those three toll roads that suppose to be connected with Waru – Juanda toll road are still not completed yet.
If completed, the traffic volume will reach the target. Waru – Juanda was built with investment of Rp. 1.3 trillion with concession period of 35 years starting from 21 May 2005. But, nevertheless, Citra Marga is optimist that its revenue this year may reach Rp.570 billion or up around 15% compare to result in 2007 of Rp.496.2 billion.
When asked about the divestment plan, Hudaya said that it was the authority of the shareholders. The board of director will only file the report to the capital market authority is there is agreement between buyer and seller. “Up to this moment there has been no due diligence. But, it all depends on the decision of the shareholders” said Hudaya.
The analyst from PT Paramitra Alfa Sekuritas, Gina Novrina Nasution said that, the sale of shares will give advantage to Citra Marga and has the potential to improve its financial condition. It is because infrastructure sector has a good prospect. The growth of this sector depends on the capital injection from the owners therefore the decision by Bakrie to invest in the company should be able to improve the performance of the company.
The same was also stated by analyst from PT Optima Securities Iksan Binarto. According to him, the performance of Bakrie’s shares is expected to be bullish after the acquisition. The shares investment will become positive sentiments for the market players. “Bakrie has the opportunity to increase its ownership in Citra Marga” said him.
Iksan predicted, the shares divestment is considered by Hari because he wanted to focus in his core business of media. But, the shares of Citra Marga currently are still bearish since it does not have the momentum yet. “Bakrie has already owned several toll roads. But, the company still needs to take into consideration the funding composition for such acquisition” he said.
