Indonesia News from Bloomberg. -->Privatizations.
Copied from Bloomberg without authorization. Typos are mine and only mine.
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BN 07:29 Indonesia invites Proposals on $2.5 Bln in state asset sales.
Jakarta, May 7 (Bloomberg) -- Indonesia has formally asked for proposals from bankers to raise $2.5 billion from the sale of stakes in 12 government companies.
The government aims to cut its stake in five publicly traded companies including domestic phone monopoly PT Telkom, and to privatize seven other wholly owned government firms.
Indonesia is selling the assets to help the government raise funds for the current fiscal year ending March 1999. The country is reeling from the 74% collapse of the rupiah to the US dollar in a year, which has triggered the country's first recession in more than 20 years.The privatization plan is part of the country's agreement with the IMF, which is leading a $40Billion bailout for the country.
In a letter sent to bankers yesterday, the country asked for proposals from financial advisers on the privatization strategy. The letter was sent by government-owed securities firms PT Danareksa Sekuritas and PT Bahana securities. Governement officials couldn't be reached for comment on the letter.
Indonesia plans to reduce its stake to 51% in each of the 12 companies, including publicly traded Telkom, PT Indosat, PT Semen Gresik, PT Tambang Timah, and PT Aneka Tambang, the letter said.
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Privatization in Indonesia can include the sales of shares for trading on public stock markets or the sale of shares to a new partner. The government set a May 18 deadline for submission of written proposals for the privatization.
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A few random thoughts:
May18 .. pretty soon..IMHO, a very short time for bankers to start negociations with potential buyers.. unless those buyers have already shown interest.
Possibility of new partners getting in. hmmm. At least we know that partner is not likely to be Deutsche telekom. They're already married to Indosat's big sister, Satelindo, the only other company allowed to provide international voice service originating in Indonesia these days.
74% collapse of the rupiah vs USD in a year --> 'cheaper' for US firms to buy stake in Indonesian companies... also means that revenues in rupiah from the Indonesia domestic market is very sensitive to future exchange rate... On the international front, a good chunk of revenues for satellite companies are in US $ (calls from overseas, international settlement rates..), which makes them a little less vulnerable to the RP/USD exchange rate.
Hope it helps,
JPC
the reference of the article on Bloomberg terminal: TLKM IJ "equity" "go", then CN "go" |
