Heidelberger plans to acquire Indocement<\/p>\n
FRANKFURT (AFX): Heidelberg Zement AG said it reached an
\nagreement with the Indonesian government and three other
\nIndonesian parties to acquire the country's second largest cement
\nproducer PT Indocement Tunggal Prakarsa TbK.<\/p>\n
A statement issued here said the agreement, signed end-
\nDecember, was also with Indonesia's IBRA, the state-run agency in
\ncharge of restructuring financial institutions, as well as the
\ntwo companies PT Mekar Perkasa and PT Kaolin Indah Utama.<\/p>\n
It said the acquisition will take place in three stages, which
\ncomprise the sale of shares held by IBRA, Mekar and Kaolin, the
\nexercise of a rights issue as well as the conversion of
\nIndocement debts to be absorbed by Heidelberger into equity worth
\nabout US$150 million.<\/p>\n
Heidelberger's spokesman was not immediately available to
\nclarify details.<\/p>\n
The deal is expected to be closed end-March, the statement
\nsaid.<\/p>\n
It said Indocement's debts will be absorbed by Heidelberger
\nand a debt restructuring plan will be implemented.<\/p>\n
It said Heidelberger will temporarily not consolidate
\nIndocement in its books.<\/p>\n
The acquisition will be carried out through the financial
\nholding Heidelberger Zement South-East Asia, a joint venture
\nbetween Heidelberger and its German financial partners, which
\nwere not named in the statement.<\/p>\n
This holding will hold more than 50 percent of Indocement
\nshares after the closing of the agreement, it said.<\/p>\n
It said Indocement, Indonesia's second largest cement
\nproducer, has three plants with total capacity of 15.8 million
\ntons.<\/p>\n
The acquisition will increase Heidelberger's cement capacity
\nby 25 percent and significantly increase its position in Asia, it
\nadded.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/heidelberger-plans-to-acquire-indocement-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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