JAKARTA (TheInsiderStories) – Samko Timber Ltd. intends to acquire 51 percent of PT Wanabinar Indonesia (WBI), an indirect subsidiary controlled by Indonesian company, PT Barito Pacific Tbk (IDX:BRPT) with estimating values more than US$20.68 million, said the company on Thursday (9/19). The Singapore’ company bought the shares through its unit, PT Sumber Graha Sejahtera (SGS), enggage in plywood processing industry.
In the agreement handled on Sept. 16, SGS’ parent company, PT Sempurna Graha Abadi will absorb 400,839 shares or 51 percent of the total issued and paid-up capital of the Barito’ unit. The deal will be effective after Samko obtain an approval from Singapore Stock Exchange and the shareholders.
After the transaction, SGS will invest in PT Sumber Graha Maluku (SGM), this 99.99 percent subsidiary owned by BWI, by taking part of all new shares to be issued by the company. All proceeds will be used by SGM to carry out its business activities and to entities under the group.
Based on the official statement, deputy Director of Barito Pacific Rudy Suparman said, the collaboration between the two parties aims to utilize forest assets that have not been operating for a long time. In the future, he adds, SGM will acquire certain industrial plantations, forest concessions, licenses, and plywood mills.
The assets managed by SGS included the concession rights of around 59,138 hectares of forest in North Maluku and the industrial business licenses to engage in primary wood production such as sawmills and plywood products.
Barito Pacific was established in 1979 under the name of PT Bumi Raya Pura Mas Kalimantan by Projogo Pangestu. The Company started out as an integrated wood-based company. Moreover, Barito Pacific was highly regarded in forestry and timber industry in the 1980s.
In 1993, the company listed its shares at the Indonesia Stock Exchange. At the time, the company had five processing mills altogether, producing plywood, block boards, particle boards and woodworking products for exports to Europe, Asia and America.
The Asian financial crisis in 1997-1998 had forced the company to discontinue the production of plywood. The company then pursued the strategy of downsizing its timber-based operations by only producing particle board in Banjarmasin, South Kalimantan, whilst diversifying its business into other resource-based industries.
Preceded by several years of thorough planning and preparation, Barito Pacific has been transformed into a fully diversified resource-based enterprise. The acquisition of PT Chandra Asri in 2007, marks a key milestone for Pangestu’ firm.
Through Chandra Asri has given Barito Pacific a strategic base to grow the downstream oil and gas businesses, while at the same time also continue to seek opportunities to develop stakes in the strategic energy resources sector in the future.
In June 2008, Chandra Asria acquired PT Tri Polyta, a major downstream producer of polypropylene that sourced its propylene raw material from the company. In 2011, the two companies merged to become PT Chandra Asri Petrochemical Tbk (IDX: CAPC) .
Currently, 71.19 percent of Barito Pacific shares owned by Pangestu, 1.45 percent by PT Barito Pacific Lumber, 0.46 percent by PT Tunggal Setia Pratama and public 26.24 percent.
The group is currently engaged in the forestry, petrochemicals, property and plantation industry sectors, and ultimately evolved into a fully diversified resource-based enterprise with growing interests in the mining and energy sectors, among other developments.
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