Sat Nusapersada gets OK for two acquisitions, expects orders to rise

The Jakarta Post, Jakarta

Shareholders of PT Sat Nusapersada, the country's top electronics component maker, approved Tuesday the Batam-based firm's plans to make two acquisitions to help boost sales.

The approval for the acquisitions, which will cost Rp 64 billion (around US$7.1 million), was given by a shareholders extraordinary meeting, a media statement said.

The two companies are PT SM Engineering (SME), which produces metal components used in various household electronics products, and PT Sat Nusapersada Brothers (SNB), which produces moldings used in the production of plastic components.

"These acquisitions will support Sat Nusapersada's goal of becoming the country's most efficient and integrated high-technology electronics producer for the high-end market," president director Abidin said in the statement.

In addition to electronics components, Sat Nusapersada also produces components for car audio systems, power units, telecommunications peripherals and exhaust fans.

Abidin said the acquisitions would help the company achieve its 25 percent sales growth target for next year, which would bring its total sales to Rp 2 trillion from an estimated Rp 1.6 trillion this year.

The increase in sales, Abidin added, would be supported by rising in orders from its main purchasers, such as Sony, Kenwood, Epson, TEAC and Sanyo.

The company, which went public last month, expects net profit this year to hit Rp 35 billion, around 110 percent higher than last year's profit of Rp 16.6 trillion. As of the end of September, Sat Nusapersada had booked Rp 33 billion in pre-tax profit.