Cemex SA wants Gresik stake<\/p>\n
MONTERRY, Mexico (Bloomberg): Mexico's Cemex SA said Wednesday
\nit is still interested in a stake in cement maker PT Semen Gresik
\nif authorities give the world's third-largest cement maker a
\nmanagement role in the state-owned company.<\/p>\n
Cemex and Indonesian officials are holding talks to work out
\nterms of the sale that satisfy both parties, Cemex said in a news
\nrelease.<\/p>\n
The government originally offered to sell 35 percent of its 65
\npercent stake in Gresik, but scaled that back to 14 percent under
\npressure from the people.<\/p>\n
"Despite the actual global economic atmosphere, Indonesia is
\nan attractive market for Cemex and offers favorable long-term
\ngrowth perspectives," said Hector Medina, Cemex director of
\nplanning and finances, in the release.<\/p>\n
Cemex said it's interested in pursuing a 14 percent stake in
\nGresik, which would mean the company won't be buying shares from
\nthe small investors that now own 35 percent of Gresik.<\/p>\n
Gresik shares have rallied in recent weeks on speculation
\nCemex would be making a general offer for the shares at a premium
\nto the market price.<\/p>\n
Cemex originally bid $418 million to buy a controlling 51
\npercent share of the state-owned Gresik, including the
\ngovernment's stake and a 16 percent stake held by individual
\ninvestors. The per share price was $1.38.<\/p>\n
Now Cemex said it is willing to purchase a minority share of
\nGresik if it also gets management participation "that permits
\nCemex to meet the investment criteria it has established," the
\ncompany said in the release.<\/p>\n
"Additionally, that would permit Gresik to benefit from
\nCemex's administrative experience," the company said.<\/p>\n
The release didn't make clear if Cemex wanted full control of
\noperations or is willing to share management with the government.<\/p>\n
A spokesman for Cemex said he couldn't provide further
\ninformation.<\/p>\n
Cemex could be willing to make a similar transaction with
\nGresik as it did in the Philippine's Rizal Cement Co., in which
\nCemex bought a 30 percent stake in October and signed a
\nmanagement contract to run the company.<\/p>\n
The Rizal transaction handed Cemex control over management
\neven though it owns a minority stake.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cemex-sa-wants-gresik-stake-1447893297",
"image": ""
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