PT Rajawali Corpora, the holding company of the Rajawali Group owned by Indonesia’s business tycoon Peter Sondakh, is in divestment mode.
Last Friday (June 12), the company signed a deal to sell 37 per cent shares of plantation firm PT Eagle High Plantations Tbk, previously called PT BW Plantations Tbk as well as approximately 95 percent of its sugar plantation to Felda Global Ventures (FGV) Holdings Berhad of Malaysia in cash and stock deal worth $680 million.
The deal came after the group earlier revealed its plan to sell portion of its shares in the country’s largest taxi operator PT Express Transindo Utama Tbk as well as possibly the entire stake in infrastructure company PT Nusantara Infrastructure Tbk.
Rajawali holds 51 per cent shares in PT Express Transindo Utama. PT Saratoga Investama Sedaya Tbk (IDX code: SRTG) has expressed interest to buy shares in Express.
Setyawan said Saratoga is conducting due diligence, which expects the due diligence to be completed by the end of this month.
Rajawali through Eagle Infrastructure holds 22.32 per cent in Nusantara Infrastructure. “We have more or less 20 per cent shares in Nusantara Infrastructure. We could sell (our) entire shares in the company,” Rajawali Corpora managing director Darjoto Setyawan.
Rajawali also plans to revive the IPO of its gold mining unit, PT Archi Indonesia, in the first quarter of 2016.
In early December 2014, Rajawali Corpora decided to postpone the IPO of PT Archi Indonesia due to weak global economy and volatility of commodity prices as crude oil plunged. The company was supposed to sell 1.6 billion units of shares or equal to 40 percent of its enlarged capital at price range of 1,895 – 2,445 rupiah a share.
Darjoto Setyawan concludes that the above corporate actions highlights Rajawali’s aim to focus on property, palm oil plantation and mining.