PT Timah to take over asphalt producer Sarana Karya

State owned tin mining company PT Timah has considered to take the entire stake of the Buton, Southeast Sulawesi-based asphalt producer PT Sarana Karya, Bisnis Indonesia reported on Tuesday.

?The plan has been discussed with the government,? a source at the publicly listed tin producer said. But the source said that the takeover still needed the approval from shareholders.

PT Timah?s corporate secretary Prasetyo B. Saksono said that the takeover of the asphalt producer was one of the tin producer?s long-term plan. ?But I don?t follow the latest development of the planned takeover,? he said.

According to its 2002 financial report, Sarana Karya suffered a loss of Rp 4.92 billion. The company?s net sales dropped to Rp 1.03 billion in 2002 from Rp 5.5 billion in the previous year.

For 2003 financial year, the company?s net sales were estimated to reach Rp 8 billion while net profits estimated to rise to Rp 625 million. The company, which also exports its asphalt to China, expects this year?s sales to increase to Rp 13 billion while profits would rise to Rp 2 billion. (*)