Hashim drops plan to acquire TubanPetro

Businessman Hashim S. Djojohadikusumo has dropped his plan to acquire 45 percent stake in PT Tuban Petrochimical Industries (TubanPetro) from 70 percent stake owned by the government through PT Perusahaan Pengelola Asset (PPA), Bisnis Indonesia reported Tuesday.

The daily quoted an executive involved in the transaction as saying last week that Hashim and Sila Kencana Lestari Group chaired by Honggo Wendratmo had different views on the transaction settlement.

Previously, Tiratamas Majutama Group, which is controlled by Hashim, has submitted a proposal to repay its debt worth Rp 3.2 trillion to government agency PT PPA which took over Tirtamas? stake in PT Trans Pacific Petrochemical Indotama (TPPI) following the financial difficulties experienced by Tirtamas in the wake of the economic crisis in late 1990s.

Meanwhile, PPA?s president director Mohammad Syahrial said that the old shareholders did not have an obligation to pay the debt in TubanPetro. ?PPA will sell the shares and loan assets to other investors,? he told Bisnis Indonesia.

PPA, through PT Tuban Petrochemical Industries, now has 59.5 percent stake in TPPI in a partnership with Japanese company Itcochu Corporation, Tuban Petrochemicals Ltd (the subsidiary of Siam Cement PLC) and Japanese firm Sojitz Corporation.

Earlier, State oil and gas firm PT Pertamina said it was eager to buy several petrochemical plants under the management of PPA include TubanPetro. (*)