JAKARTA (TheInsiderStories) – PT Saratoga Investama Sedaya Tbk (IDX: SRTG), an Indonesian private equity fund, spent Rp1.08 trillion (US$77.42 million) to raise its ownership in PT Tower Bersama Infrastructure Tbk (IDX: TBIG), it said in a disclosure information on Friday (07/30).
Tower Bersama is a telecommunications infrastructure provider company for the placement of base transceiver stations by telecommunications operators in Indonesia.
As end of March, the company founded by Edwin Soeryadjaja and Sandiaga Salahuddin Uno, owned 30.80 percent in the tower company through its subsidiary PT Wahana Anugerah Sejahtera.
Sandi Rahayu, an official at Saratoga elaborated, the company purchased 23.82 million TBIG’ shares at Rp4,000 each, made on July 23. While Wahana, bought the shares twice on July 19 and 23, with total amount 245.03 million shares at the same price. Beside Saratoga, Tower Bersama shares owned by PT Provident Capital Indonesia, a local investment fund founded by Winato.
Based on the tower operator data on June 30, Provident holds 25.52 percent and the remaining is public, which holds 45.04 percent.
This year, Saratoga allocated fund $100 million to invest in five new companies in the consumption and hospital sectors. According to Director of Investment at Saratoga Devin Irawan, 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. 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’ shares in Kestrel coal mining, Australia with a value of $2.25 billion. Beside, 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.
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