PPA Reject Sinivasan ????

The State Assets Management Corporation (PPA) has rejected the proposal of three investors from Hong Kong and Singapore to acquire the assets of Texmaco Group as they are related to the former owner of the group.
The President Director of PPA Mohammad Syahrial said that following the rejection over the three investors, there is now only one local companies conducting due diligence over the assets of Texmaco.
"Previously there were four investors wanting to buy Texmaco. But after the further review, we know that the three investors are related to the previous owner so that PPA has rejected their involvement in the bidding," he said four week ago when I met him in his office.
But he declined to mention the name of investors related to the previous owner of Texmaco. "It is not necessary to disclose the name, but the use special purpose vehicle."
He said that based on the initial schedule, PPA and the government will take the decision on February 20 on who will takeover the assets.
Since December 22 2006, PPA has started the program to sell credit assets of Texmaco. PPA will use the cash to cover the state budget deficit of 2007. The value of the assets is based on the assessment of PT Bahana Securities and PT Satyatama Graha Tara.
Based on such assessment, the Finance Minister will take the decision on the selling price of the asset.
PPA has assigned PT Indo Premier Securities to sell the credit asset of Texmaco Group. PPA also has assigned the law office of Marsinih, Martoadmodjo Iskandar and Kusdiharjo (MMIK) as the legal consultant.
The total debt of technical unit of Texmaco is US$1.48 billion, while the debt of the textile unit is US$833.93 million, and the debt on letter of credit is US$87.36 million so that the total debt of Texmaco to PPA is US$2.98 billion.
As PPA has been selling the assets of Texmaco, it means it has closed all negotiation on the debt restructuring.
Some investors have been interested to acquire the assets. A Singapore base investor have offered the price of IDR90 billion or 0.3% to the asset value of IDR29.37 trillion. Farallon Capital Asia, through PT Kinerja Prima Perkasa, has offered to buy the assets at the price of IDR290 billion or 1% to the total value.
Prabowo Subianto, a former army commander, said once that he ready to establish a consortium to takeover the assets at the price of 5% to the book value.
The Consortium of Utara Capital, chaired by Mirzan Mahathir (the son of former Malaysian Prime Minister Mahathir Mohammad) and China Blue Star also have expressed once that they are interested in acquiring the assets of Texmaco.