Rajawali Hopes to Wrap Up Express Stake Sale Ahead of Idul Fitri
Jakarta. Diversified business conglomerate Rajawali Corpora is seeking to sell its 51 percent stake in taxi operator Express Transindo Utama to publicly listed investment firm Saratoga Investama Sedaya before Idul Fitri, a Rajawali executive said last week.
“The deadline of due diligence has passed. We are upbeat that the stake sale is nearly finalized. The execution is expected to take place before Idul Fitri,” Adam Jayaputra, general manager for investment at Rajawali Corpora, said last week. He was referring to the end-of-Ramadan celebrations expected to start on July 17.
The conglomerate is controlled by Peter Sondakh, 63, Indonesia's seventh-richest person with a net worth of $2.6 billion, according to Globe Asia’s 150 Rich List 2015.
Rajawali will refer to the average price of the operator of the well-known Express taxis within 90 days before the stake sale announcement to settle on a minimum price, Adam said.
Since the taxi company went public in 2012, its share price has skyrocketed by 86.6 percent.
Traded under the code "TAXI" at the Indonesia Stock Exchange (IDX), Express closed at Rp 1,035 on Monday, a 0.96-percent decline from a day earlier.
SSI will be required to hold a tender offer when the acquisition is completed, in line with regulations when taking over a listed company.
Adam said Rajawali group will use proceeds from the stake sale to develop the group's core business or acquire other companies.
“Amid uncertainty in [Indonesia's] current economic condition, cash is king,” he explained.
Rajawali managing director Darjoto Setyawan has previously said that the company plans to focus on its businesses in the property, mining and palm oil sectors.
The conglomerate has dealings in various industries, including telecommunication, hospitality, cement, consumer goods, retail and transportation.
A source from withing the company told reporters last month that Rajawali has been in control of Express for nearly 20 years and it was "time to cash in” on its investment.
The move certainly isn’t new for Peter, who built his reputation by buying and then selling companies with a hefty profit in the past decade.
The conglomerate’s most lucrative deals include the sale of Bentoel Internasional Investama for $494 million in 2009 to British American Tobacco.
In 2010, Rajawali sold $1 billion worth of shares in Semen Gresik, which it bought from Mexican cement maker Cemex, for $337 million in 2006.
Investor Daily & GlobeAsia
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