Bapepam Allows Sari Husada to Go Private
Friday, 15 December, 2006 | 15:57 WIB

TEMPO Interactive, Jakarta: The Capital Market Supervisory Board (Bapepam) will allow PT Sari Husada's Extraordinary General Meeting to take place on December 21. The meeting agenda is the approval of the plan to be a closed company (go private) and leave from the Jakarta Stock Exchange (JSX). However, there are Sari Husada minor shareholders who asked that the meeting be delayed because the company has not settled its obligations.

“After checking the documents, we considered there is no problem,” said Bapepam Chairman Fuad Rahmany in Jakarta, yesterday (14/12). He apologized to several Sari Husada's minor shareholders who still support the healthy and baby food company.

Roland Haas, an individual investor who is a minor shareholder of Sari Husada, asked Bapepam not to give a license for the company's shareholder meeting. The reason is Sari Husada still have problems to solve before becoming a closed company.

First, the transfer price of the company , PT Nutricia Indonesia Sejahtera, is lower than other milk producers. “The margin of price transfer to Nutricia is between five and seven percent, while to Nestle, Wyeth and Morinaga, between 28 and 45 percent,” said Roland during an interview with several media, Wednesday night (13/12). The price difference causes losses to shareholders because Sari Husada's revenue and profit potentials decrease. In addition, the state may lose tax revenue amounting to Rp27 billion.

Second, Sari Husada still saves 101.7 million stocks in portfolios from a buyback program. However, in accordance with the agreement, all stocks must be sold back to the market. Third, the company's decision to pay Rp500 million fine to the board of directors. “The fine violates the regulation of interest conflict,” said Roland.

He regrets the capital market authority’s attitude which is not strict and just lets the problem be. “This will be a mode of operation for other issuers,” he said. Sari Husada's Secretary, Yeni Fatmawati, said the problems conveyed by Roland have been discussed in the Annual General Meeting (AGM) some time ago. “The 'go private' decision still goes ahead as scheduled,” she said. While according to Fuad, Bapepam has studied the problems mentioned by the minor shareholder, “But these matters are uncertain, so they're not enough to stop the meeting,” he said.

YULIAWATI | WAHYUDIN FAHMI