JAKARTA (TheInsiderStories) – PT Saratoga Investama Sedaya Tbk (IDX: SRTG), an investment holding firm, allocated fund US$100 million to invest in five new companies in the consumption and hospital sectors, said the director today (05/23).
Director of Investment at Saratoga Devin Irawan said the company wants to invest in hospitals because has a high opportunity to collaborate with public health insurance. So far, the public listed company has owned Awal Bros Hospital and planned to add two new hospitals in Jakarta and Karawang in this year.
Furthermore, the company also pays attention to the industry of fast moving consumer goods. This industry is also considered to grow in the future.
Saratoga also boosts performance in its portfolio companies. PT Adaro Energy Tbk (IDX: ADRO) has acquired 80 percent of Rio Tinto’s shares in Kestrel coal mining, Australia with a value of $2.25 billion.
Beside ADRO, another investee of Saratoga, PT Mitra Pinasthika Mustika Tbk (IDX: MPMX) has also divested its assets in the lubricating business to Esso Petroleum Company and ExxonMobil UK. MPMX gets fresh funds of $436million from the divestment.
Then, PT Merdeka Copper Gold Tbk (IDX: MDKA) is in the process of acquiring an Australian natural resource company, Finders Resources.
Amid the expansive move, Saratoga does not has special revenue or profit target for this year. This is because the company’ earnings and profits are highly dependent on the stock price where the Saratoga invests, said Irawan.
In 2018, Saratoga recorded a loss of Rp6.2 trillion, significantly decline from 2017 which reap a net profit of Rp3.27 trillion. The company’ loss was due to a net loss on investments in equity worth of Rp7.25 trillion ($503.47 million). Prior to that, Saratoga had reaped profits of Rp2.35 trillion in 2017.
Director of Finance Saratoga Lany Djuwita said that Saratoga had been able to pocket dividend income of Rp900 billion from the company’ investee in 2017. The dividend came from Adaro Rp483 billion, PT Tower Bersama Infrastructure Tbk (IDX: TBIG) Rp251 billion, and PT Provident Argo Tbk (IDX: PALM) of Rp117 billion, and other investees.
Saratoga also plans to buy back shares to push back the company’s stock price. Management considers SRTG’s share price in the capital market does not reflect the company’s fair price. So that corporate action needs to be done.
In addition, the stock buyback was also carried out to maintain the long-term investment of its employees. Because the company made by Sandiaga Salahuddin Uno has a program to give shares of the company to its employees.
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