Bakrie & Brothers to Become Portfolio Manager
Friday, 25 January, 2008 | 15:29 WIB
TEMPO Interactive, Jakarta: PT Bakrie & Brothers Tbk. is planning to change its business to a portfolio manager. This measure was carried out after completing the acquisition of three affiliated companies: PT Bumi Resources Tbk., PT Energi Mega Persada Tbk. and PT Bakrieland Development Tbk. amounting to Rp51.3 trillion.
“We're heading more to strategic investment. It could be portfolio manager or private equity,” Gafur Umar, Bakrie & Brothers Managing Director, explained to Tempo in Jakarta yesterday (24/1).
As a portfolio manager, he said, the company will buy and sell assets from inside the country or abroad. Bobby said that Bakrie & Brothers could be a minority shareowner. “It's possible that we invest five percent in Coca-Cola or Microsoft. But we'll see which industry can be maintained for long- and short -term investment,” he said.
By becoming a portfolio manager, Bakrie & Brothers will no longer be involved in its subsidiaries' operational activities. The company will not intervene in the corporate action to be taken by the subsidiaries.
“Bakrie Telecom's rights issue is still ongoing. Then Bumi's acquiring Herald is also ongoing,” said Bobby.
Bobby stressed that the corporate action was the management's initiative, not the family of the Bakries.
So the independent shareholders' support for this action is expected. “Because Bakrie Company, owning 28 percent shares, cannot decide it,” said Bobby.
In preparing the plan, said Bobby, two portfolio managers, CSLA and Danatama Makmur, have researched it. According to their calculation, Bakrie & Brothers' business scale will develop by around five folds if this plan succeeds.
In terms of acquisition, in the first stage Bakrie & Brothers will carry out a rights issue worth Rp40.1 trillion.
As regards market absorption, Bakrie & Brothers' Financial Director, Yuanita Rohali, said she will completely surrender the matter to independent shareholders.