WIKA Prepares IDR 500 billion to Acquisition Plan
PT Wijaya Karya Tbk (WIKA)’s plan to carry out acquisition of three companies (coal contractor, toll road operator, and mechanical electrical company) are in preparation process. WIKA is preparing the fund IDR 500 billion from internal cash IDR 100 billion and obligation plan IDR 300-400 billion.
WIKA has pointed PT Danatama Makmur as financial advisor to mining contractor acquisition, PT Indo Primier Securities to toll road acquisition, and PT Trimegah Securities Tbk to mechanical electrical company acquisition.
“We has already offered the offering and pricing for the three companies which will be acquitted. The negotiation process is still on progress” said Corporate Secretary Eddy Sularso in Jakarta.
The Coal Contractor Company in Kalimantan is old player and having asset amount IDR 1 trillion. The toll road company is new player with asset more than IDR 2 trillion. The company also is caring out toll road project in Java and will complete at the end of the year 2009. In other hand, the Mechanical Electrical Company has asset under IDR 700 bilion, “The acquitision of the three companies are carried out to increase competition and increase the next financial performance,” Eddy said.
Net Income Increases 33 %
In 2007, WIKA records net income IDR 129 billion (increase 33% compared with net income in 2006 is amount IDR 97 billion. WIKA sale has reach IDR 4,3 trillion (increase 26 % compared with the sale in 2006 is amount IDR 3,4 trillion).
Eddy Sularso explained that the income is higher than company target is IDR 117 billion. He said, the increase can be reached by risk management implementation, cost efficiency and the effort to get higher margin projects.
For this year, The company made sale target IDR 6.5 trillion (increase 50 % compared with the sale in 2007). Net income is targeted to increase 155% and reach more than IDR 200 billion, “ We are sure on that target, remembering the WIKA has recorded new contract more than IDR 2 trillion and contract total IDR 9,1 trillion until this time,” he said.