June 19 (Bloomberg) -- PT Polychem Indonesia Tbk’s largest shareholder, the Nursalim family, is seeking a buyer for a stake of as much as 70 percent in the company, said two people with knowledge of the matter.
HSBC Holdings Plc is advising the Nursalim family, said the people, who asked not to be identified as the sale process is private. Shares in the maker of nylon cords, polyester chips and filaments have dropped 37 percent this year before today, valuing the company at 894.5 billion rupiah ($89 million).
The Nursalim family, which also controls Indonesia’s largest tire maker PT Gajah Tunggal Tbk, is seeking a buyer after weakening demand in Europe and rising raw material costs caused Polychem’s profit to slump 74 percent to $8.65 million last year. They have received initial offers for the stake, the people said without naming bidders.
Officials at Polychem weren’t immediately available to comment on the sale.
Indonesia is budgeting for 6.3 percent economic expansion this year, and rising demand in the country of 242 million people has attracted chemical and additive makers including Symrise AG of Germany and Switzerland’s Syngenta AG.
Polychem is Indonesia’s only local supplier of ethylene glycol, also used in antifreeze. It competes with companies such as Dow Chemical Co. and Saudi Basic Industries Corp.