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January 16, 1999atimes.com
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BUSINESS IN ASIA TODAY

Korean exporters feel Brazilian pinch
SEOUL - About 40 percent of South Korea's exporters who had been trading with Brazil are having a tough time maintaining exports to the financially troubled country, according to the Korea International Trade Association (KITA).

A KITA survey on about 100 Korean trading firms exporting to the Latin American country said that about 34 percent had experienced a fall in the number of export negotiations with Brazilian firms since the financial crisis began, with about 4 percent saying that their contacts with Brazilian importers had been aborted altogether.

Up for grabs: 14% of state mining company
JAKARTA - The government in the first quarter of this year is scheduled to sell some 14 percent of the shares of state mining company P.T. Aneka Tambang (Antam) (JSX:ANTM).

At present the government controls a 65 percent stake in the company, while another 35 percent is owned by the public. Antam president Dedy Aditya Sumanegara said that there had been a score of foreign investors engaged in the mining business who had expressed interest in buying the shares. They come from Australia, Canada and the U.S.

Seoul gives Hyundai go-ahead for N. Korea project
SEOUL - The government has given the green light to Hyundai's Mt. Kumgang development project after the conglomerate secured a guarantee from North Korea on Tuesday for 30 years of exclusive rights to various recreational facilities to be built around the scenic mountain.

The approval came at a meeting of the Unification Ministry's inter-Korean cooperation consultative body Friday morning. With the government's approval, Hyundai is now able to remit the first installment of US$25 million to the North for developing the resort area.

Astra offers banks partial payment of interest
JAKARTA - Indonesia's largest carmaker PT Astra International (JSX:ASII), now declared in default by a syndicate of banks, has offered a partial payment of interest due on about U.S.$1.9 billion in foreign debt.

In a statement to the Jakarta Stock Exchange, the company said that it had been ordered by the syndicate - led by Japan's Sanwa Bank - to repay in full all principal and interest relating to the loans.

The Singapore branch of Tokai Bank Ltd of Japan has also declared Astra in default. Toyota is a shareholder of Astra International with an 8.5% stake.

Jakarta divests $66m worth of noodle shares
JAKARTA - The government has divested 100 million shares (5.46%) of the world's largest instant noodle maker P.T. Indofood Sukses Makmur (JEX:INDF) worth Rp500 billion (U.S.$66.7 million) or Rp5,000 per share.

Special assistant to State Minister for Empowerment of State Enterprises Sofyan Djalil said the divestment was carried out through a "block sale" process to overseas fund managers, duly represented by Jardine Fleming.

Lighting giants lobby Delhi for duty-free imports
NEW DELHI - Leading lighting equipment multinational companies, including G.E., Osram Gmbh of Germany and the Netherlands-based Philips, are lobbying the Indian government to allow duty-free import of finished lighting products.

Finished compact fluorescent lamps attract 40 percent custom duty at present, leading Indian daily The Observer of Business and Politics said. Most of the multinationals have set up massive production bases in countries like Iran, China and the eastern Germany, with low production costs, and it is very profitable for them to export finished goods to India, sources said.

U.K. bank favored for Seoul Bank buyout
SEOUL - The Korean government favors HSBC Holdings among bidders for Seoul Bank (KSE:02860) and is tilting towards accepting the London-based bank's demand for a buyout of all minority shareholders, according to an informed government source Friday.

Seoul Bank shares have been hitting daily highs and reached 3,850 won per share on recent rumors that the government will not sell off stakes of minority shareholders as it did with Korea First Bank. HSBC and three U.S. investment banks are contending to buy Seoul Bank, but HSBC has the best chance, the source said.

Indian Oil Corp. to offload 5% equity
NEW DELHI - State-owned oil major Indian Oil Corporation (I.O.C) will offload five percent of its equity in March following a government directive to garner an estimated Rs 8 billion (U.S.$188 million), Indian federal finance ministry officials said.

This would be in addition to the 10 percent of I.O.C. shares the government decided to sell through crossholding for which cabinet gave the green light Wednesday.

Indonesian electricity supplier to tender for coal
JAKARTA - Minister of Mines and Energy Kuntoro Mangkusubroto said he had no objections to a proposal to let 20 percent of state electricity company PLN's need for coal be met by a supplier selected through a tender.

The proposal was earlier made by Supardi, president of state coal mining company P.T. Tambang Batubara Bukit Asem (PTBA), following a stalemate in its negotiations with PLN on the price of coal the former would sell to PLN-owned Suralaya thermal power plant. The tender was proposed because since last year PTBA was only able to supply coal to PLTU Suralaya totalling 80 percent of the volume agreed in a February 24, 1997, contract.

C.D.C takes 25% equity in India's Power Project
LONDON - The Commonwealth Development Corporation (C.D.C.) has taken a 25 percent equity stake in the 156 million pound sterling Power Project in Kondapalli near Vijayawada in the South Indian state of Andhra Pradesh.

Other investors in the giant power project will be the Hyderabad-based Lanco Group, Britain's Eastern Generation, and Korea Heavy Industries and Construction Company, C.D.C. Director Robert Mitchell said.

Lanco Group will have a 34 percent equity stake, Eastern Generation will hold 30 percent and the Korean group 11 percent. The 335 MW combined cycle plant will be operated by Eastern Generation.

India to produce 100-seater planes
NEW DELHI - India will start producing small passenger jets by the turn of the century, federal Civil Aviation Minister Ananth Kumar said Thursday. "We intend to produce our own passenger jets, probably 100-seaters, by the turn of this century. We have the capability," Kumar said.

Korea's Hyosung plans to sell plastics unit to French firm

SEOUL - Hyosung Corp. (KSE:01930) plans to sell its engineering plastic production unit to Rhodia Co. of France to secure funds to lower its debt ratio to 200 percent, industry sources say. The parent company of Hyosung Group is seeking to raise 200 billion won by selling assets.

Office construction halted in Hanoi
HANOI - The government has halted any plans to build new office buildings or conference halls in Hanoi in 1999, the Nhan Dan daily reports. The construction of projects whose capital resources are unstable will also be cancelled. The government says it does not have the money to continue these projects and is developing solutions to the problem.

(Asia Pulse)


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