Jakarta to cash in beer shares for schools
Jakarta administration plans to sell its 26% shares in the listed beer producer PT Delta Jakarta Tbk, deputy governor Fauzi Bowo said yesterday as reported by Tempointeraktif.com.
What to do with the proceeds? Fauzi said some would be used to build and improve school facilities. Bold decision!
Delta is the producer of Anker beer, Carlsberg Beer, San Miguel, and non-alchoholic drinks such as Sodaku. Last year the company booked net profit of Rp56 billion (around US$7 million), jumped significantly from Rp38.7 billion.
How much will be the proceeds for Jakarta administration? Well, here's the math. Total Delta shares are 16 million. With market price of Rp27,000 per share, the total market value of Delta shares is Rp432 billion. It means, Jakarta administration's shares of 26% could translate into Rp112 billion. But with premium of 25% above the market price, it could reach Rp140 billion.
The proceeds would be enough to fix Jakarta's poor school buildings if they spend it right!
But why in the first place the administration is willing to exit Delta? Is it something to do with the administration's strong stance against alcohol? I mean, looks strange when the admnistration launched major crackdown on alcohol in the last few months but keep enjoying the dividend payment from companies like Delta, right? Is there any pressure from legislators, especially the fact that PKS controls majority seats in Jakarta legislative?
What to do with the proceeds? Fauzi said some would be used to build and improve school facilities. Bold decision!
Delta is the producer of Anker beer, Carlsberg Beer, San Miguel, and non-alchoholic drinks such as Sodaku. Last year the company booked net profit of Rp56 billion (around US$7 million), jumped significantly from Rp38.7 billion.
How much will be the proceeds for Jakarta administration? Well, here's the math. Total Delta shares are 16 million. With market price of Rp27,000 per share, the total market value of Delta shares is Rp432 billion. It means, Jakarta administration's shares of 26% could translate into Rp112 billion. But with premium of 25% above the market price, it could reach Rp140 billion.
The proceeds would be enough to fix Jakarta's poor school buildings if they spend it right!
But why in the first place the administration is willing to exit Delta? Is it something to do with the administration's strong stance against alcohol? I mean, looks strange when the admnistration launched major crackdown on alcohol in the last few months but keep enjoying the dividend payment from companies like Delta, right? Is there any pressure from legislators, especially the fact that PKS controls majority seats in Jakarta legislative?
Labels: Fauzi Bowo
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posted by yosef at 11:20 AM
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