2. PT Aqua Golden Missisippi Tbk plans delisting.
The country's largest AMDK company is PT. Aqua Golden Missisippi Tbk (AGM) producing mineral water in containers. The company, which was listed on the Jakarta Stock Exchange (JSX) and the Surabaya Stock Exchange (SSX) announced recently that it wants to improve efficiency to be able to survive under the tight competition in the country.
AGM announced delisting plan on September 30, 2005. For that purpose the company planned to hold a general meeting of its shareholders on Nov. 14, 2005. Tender is to be held on Jan. 6, 2006 to buy the shares held by investing public.
The JSX, therefore, has suspended trading of AGM shares starting Sept. 30, 2005. Meanwhile, investors have carried out due diligence studies of the company to determine the best prices of the shares held by investing public.
AGM proposed to buy the 6.4% shares held by the public at a price of Rp 100,000 per share or 65% higher than the closing price of Rp 59,000 per shares before the delisting plan was announced on Sept. 30.
Actually AGM already announced its delisting plan last year, but the plan failed to come to reality as the investing public and the company disagreed on the share price to be paid by the company.
At that time AGM proposed to buy the shares at Rp 30,000 per share but the public shareholders asked for a higher price. The investing public also rejected the appraiser named by AGM. This time AGM named consultant Amir Abadi Jusuf (AAJ) to appraise the prices of the shares to be paid by AGM.
Despite the good price offered by the company, the renewed plan will most likely fail again. The general meeting of the shareholders failed to take place on Nov 14 as only 52.74% of the independent shareholders agreed to attend. According to the regulation of the capital market watchdog Bapepam, a general meeting of shareholders will be valid only if at least 75% of the independent shareholders attend. Many of the independent shareholders refused to attend over price disagreement. They demanded a price of Rp 1 million per share and the company agreed only to pay Rp 100,000 per share.
AGM President Willy Sidharta said he has not decided what to do after the failure. "We don't know whether to go ahead with the delisting plan. We have yet to discuss that matter. If we are to carry on with the plan we have to follow the rule of Bapepam," he said after the failed general meeting of the shareholders.
JSX President Erry Firmansyah suggested that instead of seeking delisting, AGM should increase the portion of public shares. With largest shares held by the public the stock trading could be more active. AGM shares could become a blue chip in the future with the determination of the public shareholder to maintain the shares. Erry said the public investors did not only want to keep the shares but they also want to see the shares active in trading. AGM is 93.6% owned by PT. Tirta Investama, and the investing public hold the remaining 6.4%. PT Tirta Investama is 74% owned by Danone Asia Pte. Ltd.
Sidharta said the delisting plan was in line with the global policy of Danone Asia. The plan is to integrate all nine subsidiaries of AGM in its bid to improve efficiency. Danone, therefore, plans to buy all shares held by non strategic shareholders. The nine subsidiaries now go their own way.
In 2004, AGM, launched a new product of bottled drinking water. The company owns 12 hectares of land with water springs in Sukabumi, West Java, to feed its AMDK plant in Jakarta. AGM has produced 4.0 billion liters of mineral water with a production capacity of 5.1 billion liters. Last year it operated at 80% of its installed capacity.
Currently, AGM concentrates on disposing of its production on the domestic market as the domestic market is still highly potential. AGM has entered the mineral water market in Brunei Darussalam, but the expansion plan failed as the market in that neighboring country was already saturated. Mineral water consumption in that country already reached 60 liters per capita. AGM once planned to build mineral water plant in Vietnam but the plan was also cancelled as that country already has a strong AMDK company.
In the past two years, AGM reported healthy financial performance. Its sales rose to Rp 1.3 trillion in 2004 from Rp 1 trillion in the previous year. Its net profit also rose to Rp 91 billion from Rp 63 billion.
Table Financial balance and profit/loss reports, 2003 and 2004 (Rp million) Description December 31 2004 2003 Assets Current assets 380,571 211,119 Non current assets 290,538 312,183 Total assets 671,109 523,302 Liabilities and equity Current liabilities 85,921 41,534 Non current liabilities 223,540 205,963 Total liabilities 309,461 247,497 Minority rights 7,151 6,081 Issued and paid up 13,162 13,162 Additional paid up capital 8,624 8,624 Profit balance 322,641 241,531 Total equity 354,497 269,724 Total liabilities and 671,109 523,302 equity Profit/Loss reports (Rp million) Description December 31 2004 2003 Income 1,333,147 1,077,222 Pre tax Profit (Loss) 133,477 93,328 Net Profit (Loss) 91,640 63,246 Financial ratio (%) Description December 31 2004 2003 Return on Equity 37.7 34.6 ILEBITDA/Total assets 19.9 17.8
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|Comment:||2. PT Aqua Golden Missisippi Tbk plans delisting.(Finance)|
|Publication:||Indonesian Commercial Newsletter|
|Date:||Sep 27, 2005|
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