Bakrie Plantations eyes Domba Mas

PT Bakrie Sumatera Plantations is currently negotiating to acquire CPO and oleochemical companies from Domba Mas (Domas) group for IDR8 billion.
Several executives knowing about the information confided one of the credit assets eyed was an oleochemical plant in Kuala Tanjung, North Sumatra.
"The total value of shares and liabilities acquisition is IDR8 trillion. Bakrie Plantations is negotiating with the creditors of Domba Mas [one of which is PT Bank Mandiri] concerning debt restructuring," one executive told a few days ago.
The total amount of debts of four Domba Emas group companies, one of which is PT Domas Agro Inti Prima owned by a Medan-based entrepreneur Susanto Lim, reaches IDR3.3 trillion consisting of IDR1.3 trillion in core liabilities and IDR2 trillion in interests.
Bank Mandiri plans to put to action two hotel assets of Domba Mas in Kuningan-Jakarta and Hotel Tiara in Medan as well as an oleochemical plant. Domba Mas and Procter & Gamble in 2005 signed a contract on the purchase of alcohol fatty acid products worth over US$1 billion for 10 years. The purchase covers over 200,000 tons of oleochemical per annum, which consist of 160,000 tons of alcohol fatty acid per annum.
When asked for confirmation, Director of Bank Mandiri Abdul Rahman revealed the state lender had resumed the sale of Domba Mas. He didn't deny when Bisnis mentioned Bakrie Plantations as one of the potential buyers. However, Abdul Rahman declined to give details about the names and number of the investors.
"We have resumed the sale of Domba Mas' credit assets. Last year, we nearly secured a deal with an investor interested in buying Domba Mas, but the crisis ruined everything," he said last weekend.
In November 2008, there were three investors interested in buying Domba Emas' assets or becoming new creditors, but the financial crisis ruined the process.