First Pacific lifts stake in company
By DUNCAN HUGHES
FIRST Pacific Co, the regional conglomerate with interests ranging from property to telecommunications, has paid just over $14 million to raise its stake in a paging operation in Indonesia.
Under the terms of the contract, First Pacific, through two of its subsidiaries, bought the remaining 25 per cent stake in First Pacific Communications held by Serting Mewah, a Malaysian telecommunications firm.
The deal, which will be financed from cash reserves, also allows for the Salim family, which owns the conglomerate in Indonesia, to buy a 12.5 per cent stake.
A spokesman for First Pacific said: 'The company anticipates that these two transactions will position it to take advantage of any future liberalisation of the growing telecommunications industry in Indonesia and considers that the Salim's direct investment will be beneficial to the business.' He said the deal was initiated by Serting which wanted the cash to invest in telecommunications projects in other parts of the world.
The subsidiaries involved are Asia Link and Holland Pacific Investments.