Titan to Takeover Fatrapolindo at US$195 Million

After acquiring 100% shares of PT Petrokimia Nusantara (Peni) in 2005, Titan Chemicals Corp Bhd of Malaysia has planned to arrange reverse takeover over 5.16 million shares of PT Fatrapolindo Nusa Industri Tbk at US$195 million.
Titan also has announced at Kuala Lumpur Stock Exchange yesterday that it has been ready to sell its assets in Indonesia to Fatrapolindo at US$188.4 million.
In this regard Titan, through its unit Titan Internasional Corp Sdn Bhd, plans to buy 5.16 million shares of Fatrapolindo at IDR345 per share, a discount of 22.5% from yesterday closing price of IDR455 at the Jakarta Stock Exchange.
In the meantime Titan Chemicals, through its init Titan Petchem, has signed conditional sale and purchase agreement with Fatra Internasional Holding Limited, a unit of Fatrapolindo.
Titan Petchem will sell 100% shares at Chemical Brothers Limited at US$188.4 million in cash to Fatra Internasional.
The acquisition is arranged while Fatrapolindo is suffering some losses. In the first nine months of the year Fatrapolindo posted the net loss of IDR33.9 billion compared with IDR17.6 billion at the same period of last year.
But the share price of the company has jumped so that the Jakarta Stock Exchange has suspended the stock on September 6.
The Malaysian petrochemical company acquired 100% shares of Peni in 2005 from Indika Group at US$78 million so that Titan has become the Southeast Asian's largest company on polyethylene. Peni's production capacity of 450,000 tons per annum has boosted Titan's production capacity by 50%.