Agis sets sights on 3 acquisitions

The Jakarta Post, Jakarta

Publicly listed electronics retailer PT Artha Graha Investama Sentral Tbk. (Agis) is set to acquire 97 percent stakes in three companies -- PT Akira Indonesia, PT TT Indonesia, and Electronic Solution -- to support its business expansion plans.

"With these acquisitions, we are aiming to become the biggest distributor and retailer of consumer electronics goods in Indonesia," Agis president director Johnny Wijaya said here Monday.

He said that the acquisitions, which would be completed by the end of July, would give his company control of between 30 and 40 percent of the country's electronics retail market, compared with 10 percent at present.

The company is also aiming to triple its revenues to more than Rp 1 trillion (about US$109.8 million) this year, he said.

Last year, Agis sales revenue decreased by 10.7 percent to Rp 342 billion from Rp 383 billion in 2005. Although the company's operating losses soared to Rp 20.9 billion from Rp 1.2 billion previously, it nevertheless booked a net profit of Rp 10.7 billion, compared with a net loss of about Rp 2 billion in 2005, thanks to other income of about Rp 22.04 billion and income tax gains of about Rp 9.8 billion.

TT Indonesia is an electronics distributor, while Akira Indonesia is a manufacturer of home appliances and electronic goods. Taken together, the two companies earned total revenue of more than Rp 800 billion last year.

Agis currently boasts 20 outlets and 25 service centers around the country. After acquiring retailer Electronic Solution, Agis will have more than 50,000 square meters of retail space and 40 service centers.

It will also become the biggest electronics distributor in the country, with between 600 and 700 dealerships.

Besides the three acquisitions, Agis also announced a collaborative venture with multimedia content provider M2B Asia Pacific Corp. to establish a joint content provider under the name Agis Asia Multimedia International.

It is hoped that the joint-venture company will become the country's leading online games provider and the first internet protocol-based television provider in Indonesia.

M2B Asia Pacific Corp. is a subsidiary of Amaru Inc., which is listed on the Nasdaq.

Johnny said that M2B had also bought about 4 percent of Agis's 1.8 billion shares at Rp 1,300 per share.