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Disciplined Investment Makes Stronger Capital and Robust Growth Opportunities for Saratoga
Until 2014, the investment portfolio value of Saratoga reached Rp 22 trillion
Jakarta, 10 June 2015 – The Annual General Meeting Shareholders (RUPST) of PT Saratoga Investama Sedaya Tbk. (stock code: SRTG) today approved the use of the entire net profit for the 2014 financial year to as capital. This decision reflects the high commitment and support of shareholders to continually strengthen the company’s business in order to optimize business opportunities in 2015.
In 2014, Saratoga recorded a net profit increase of up to 226% to Rp 803 billion from Rp 246 billion in 2013. The achievement was driven by increased revenue of 67% to Rp 6.1 trillion. Business growth was followed by strengthening fundamental investment companies, mainly in two sectors – infrastructure and natural resources.
Meanwhile, the Extraordinary General Meeting Shareholders (RUPSLB) approved the resignation of Sandiaga Salahuddin Uno as the president director of PT Saratoga Investama Sedaya Tbk. and appointed Michael W.P. Soeryadjaya as his successor. Sandiaga’s resignation was a personal decision to pursue personal aspirations. He will continue to remain as one of the major shareholders in Saratoga.
After the RUPSLB, Sandiaga expressed his gratitude for the support of the entire management, staff, business partners as well as the shareholders and stakeholders while under his leadership at Saratoga. Due to the solid support and cooperation, Saratoga has become an active investment company, expanding rapidly and is supported by very strong business fundamentals.
Under the leadership of Sandiaga, Saratoga has had a long track record of creating and improving corporate value for its stakeholders. Through a careful, disciplined and measurable investment approach as well as supported by conservative funding, Saratoga successfully nurtured investment firms to grow as major business players in the sector. At the end of 2014, Saratoga’s investment portfolio value reached Rp 22.2 trillion, an increase from Rp 17.8 trillion in 2013.
In an effort to strengthen the investment portfolio, the Company invested Rp 583 billion in 2014 – of which Rp 336 billion was for new investments and Rp 247 billion was to strengthen existing investments. Saratoga is extremely careful and highly selective in determining investments. Of the total 139 new opportunities considered in 2014, the Company only chose two new investments, namely PT Gilang Agung Persada (GAP), a company in the luxury fashion & lifestyle brand management company, and PT Merdeka Copper Gold, a gold and copper mining company, through PT Trimitra Karya Jaya. PT Merdeka Copper Gold’s inaugural listing in the Indonesia Stock Exchange is scheduled for June 2015.
Sandiaga is delighted to have been able to lay a solid foundation at Saratoga. This is strengthened by The Company’s consistent achievements in delivering successful investment results that give significant added value for its stakeholders. There will be one key important milestone under Saratoga infrastructure sector that will happen during this month of June. One of the investee companies in the infrastructure sector – PT Lintas Marga Sedaya – will inaugurate the operation of the Cikopo-Palimanan toll road (Cipali) as part of the Trans Java toll. The Cipali toll road – at 116 km – is a significant portion of the toll roads in Indonesia, which now totals 820 km (data from BPJT, April 2015).
Cipali’s operations will provide many benefits, both for the community around the toll road and for the national economy, as it will encourage the growth of new economic centers, improving the efficiency of travel time and reducing logistical costs. The successful development of the Cipali toll is expected to accelerate the development of infrastructure, especially other toll roads in Indonesia.
“I am grateful and proud to have been part of Saratoga’s remarkable business growth. As an active investment company, Saratoga actively tries to optimize every new business opportunity, so as to create new jobs and contribute to the growth of Indonesia’s economy, and the improvement and quality of life. With solid fundamentals and strategies that have been tested, Saratoga’s business future is very bright,” said Sandiaga.
Investment in 2015
Saratoga President Director Michael W.P. Soeryadjaya showed his appreciation of Sandiaga’s decisions and thanked and congratulated him on Saratoga’s robust performance under his leadership. Going forward, Saratoga will continue to strengthen its business by optimizing investment opportunities in the three main sectors, namely consumer, infrastructure and natural resources. With growing number of population, the middle class and purchasing power, business opportunities in Indonesia are indeed promising.
“Saratoga is set to enter the new era and will continue to strengthen its position as an active investment company and will keep creating optimal added values for stakeholders. With ever-stronger capital and more solid investment portfolios, we believe Saratoga will be able to optimize its future growth. We will continue to focus on prudent, disciplined and measured investment strategies to ensure optimized added value for shareholders and stakeholders,” said Michael.
Saratoga Finance Director Jerry Ngo added that as part of investment strategies this year, on 21 May 2015, Saratoga through its subsidiary PT Surya Nuansa Ceria (SNC), signed an operational agreement with PT Puncak Jaya Berlima to set up PT Agra Energi Indonesia, an early-stage oil and gas exploration company, with a 30% ownership stake worth USD7.5 million.
Funding in 2015
On 26 May 2015, Saratoga through its subsidiary Delta Investment Horizon Ltd (Delta) issued five-year bonds scheduled to mature in 2020. The bonds can be converted into shares or exchangable bonds (EB) with a coupon set at 3% (YTM 3.75%) with a nominal value of USD100 million.
The EB is exchangeble to PT Tower Bersama Infrastructure Tbk shares (stock code: TBIG) at a premium of 22.5%, which is equivalent to Rp 10,706.7 per share. The shares represent 2.6% of TBIG’s total fully paid shares outstanding. Saratoga is planning to use the funds generated from EB to finance its new investments, settle a portion of its debts and support the company’s operations.
“The issuance of the Exchangeable Bond (EB) is one of our strategies in diversifying our funding sources. We are the first Indonesian company that issued equity-based bonds since 2010. We are very proud and pleased that the EB issuance was such a success, which is a testament to investors’ confidence in Saratoga’s solid business model and track records. We believe with our conservative leverage and welll-executed funding strategy, Saratoga can continue its investment strategy actively to generate positive results,” said Jerry.
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About PT Saratoga Investama Sedaya Tbk.
Founded in 1998, PT Saratoga Investama Sedaya Tbk. (Saratoga) is a leading active investment company in Indonesia. Saratoga takes an active role in managing its investee companies as well as in exploring investment opportunities in Indonesia.
Saratoga focuses on investment opportunities in the early-stage as well as in the growth stage, and also in special conditions with emphasis on sectors that support Indonesian economic development, such as consumer, infrastructure, and natural resources.
Saratoga’s vision is to continue to be the major active investment company in Indonesia as well as the partner of choice for national and foreign investors, who wish to participate in the dynamic growth of the Indonesian economy.
For more information on PT Saratoga Investama Sedaya Tbk. please visit: www.saratoga-investama.com
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