Tri Polyta to buy Chandra Asri in $1.2 bln share deal

Tri Polyta Share Up Rp 200 to Rp 3.250

PT Tri Polyta Indonesia (TPIA), the country's largest manufacturer of polypropylene resins, said on Saturday it will acquire petrochemical firm PT Chandra Asri in a share-swap deal worth about $1.2 billion.

The combined companies, both of which are controlled by Indonesian tycoon Prajogo Pangestu through holding company PT Barito Pacific (BRPT), will create Indonesia's biggest listed petrochemical firm.

"We expect the deal to be completed by January 1 2011," said Suryandi, a director at Tri Polyta.

Barito share up Rp 30 to Rp 1,240 on Friday

Barito Pacific owns 77.9 percent of Tri Polyta as well as 70 percent of Chandra Asri. Barito will own a 71.6 percent stake of the combined firm after the deal.

Suryandi said Tri Polyta will issue 2.93 billion new shares to Chandra Asri's shareholders in exchange of the firm's $1.2 billion assets.

He declined to give an indicative price for the new shares. A source close to the deal, who declined to be identified, said the company may offer the shares at 3,579 rupiah, a 10 percent premium to the firm's closing price on Friday and valuing the deal at 10.5 trillion rupiah ($1.17 billion).

The company has appointed Deutsche Bank (DBKGn) and Singapore's DBS Group (DBSM) as advisors for the deal. ($1=8953 Rupiah). Source: Reuters