The Jardines group is to make its first major acquisition in Southeast Asia since the financial crisis after winning a fierce battle to take over Indonesia's largest car-maker, Astra International.
The Indonesian Bank Restructuring Agency (Ibra) yesterday named a consortium led by Singapore-listed Cycle & Carriage as winner of a tender for the agency's 38.4 per cent sequestered stake in troubled Astra.
Cycle & Carriage, a car distributor with little experience in manufacturing, is 24.6 per cent owned by Jardine Strategic.
Jardine Strategic shares have risen almost 22 per cent in the past two days to close yesterday at US$2.11.
Philip Eng, managing director of Cycle & Carriage, said: 'We are very optimistic and believe in the long-run future of Astra International [despite group debts of more than US$2.4 billion].' Astra is widely perceived as a well-run business with good prospects, as long as Indonesia's economy, currency and political climate stabilise.
It ran into hard times due to large unhedged US dollar loans when the rupiah crashed in 1998.