Sateri is Sukanto Tanoto’s company incorporated in the Cayman Islands, Sateri grows eucalyptus trees and produces specialty cellulose in Brazil, and operates a cellulosic fiber mill in China’s Jiangxi province to provide materials for textile and non-woven customers. In October 2010, Bank of China International, Credit Suisse and Morgan Stanley involved in Sateri’s IPO.
Sateri planned to raise US$1 billion in a Hong Kong initial public offering.
As mentioned in the report, Sukanto Tanoto bad reputation does not convince people. Sateri offered 505 million shares on the Hong Kong Stock Exchange at HK$6.6 per share. Sateri raised around $430 million from the IPO. 2 years later, just 1 year later in September 2011 the stock collapsed to just above HK$2.0 and going down afterwards. Now in Feb 2013, the stock just worth HK$1.84. Analyst predicts the stock will keep going down.
Clearly public does not trust the company with Sukanto Tanoto’s bad reputation.
Sukanto’s Asian Agri was recently charged $230 million with tax evasion. Added with Sukanto’s record of bad debts, corrupt practice and rainforests clearing.
Added to this stock misery, on February 6, 2013, Sateri was investigated by China anti dumping. The Chinese government launched an antidumping investigation of imports of cellulose pulp from the United States, Canada and Brazil based on a petition by Chinese pulp, paper, textile and cotton product producers. The Brazilian company named in the petition is Sateri Holdings Limited with a margin of 49%. Sateri is definitely going downhill.