Indocement to launch rights issue<\/p>\n
JAKARTA (JP): Publicly listed cementmaker PT Indocement
\nTunggal Prakarsa will launch a rights issue to strengthen its
\ncapital structure.<\/p>\n
Indocement corporate secretary Ria Sjahroni Sereh said the
\nrights issue would also be part of the cement producers's debt
\nrestructuring program.<\/p>\n
\"We expect to hold the rights issue before the end of this
\nyear,\" she said, without giving further details on the plan.<\/p>\n
She added that the rights offer would come before Indocement
\ncompleted the sale of the company's shares to foreign strategic
\npartners.<\/p>\n
Ria said the company, the country's second largest cement
\nproducer, was looking for strategic investors in order to improve
\nits performance.<\/p>\n
\"Two foreign cementmakers have made due diligence on the
\ncompany since July,\" she said after the company's extraordinary
\nshareholders meeting.<\/p>\n
The strategic investors are French La Farge SA and German
\nHeidelberger Zement, she added.<\/p>\n
Ria said that Indocement had long sought a strategic alliance
\nwith international cement companies since last year in its effort
\nto improve its global marketing network.<\/p>\n
\"Forming a strategic alliance with global players will
\ncertainly enhance our international marketing network,\" she said,
\npointing out that France's La Farge and Germany's Heidelberger
\nhad recognized the company's professional management.<\/p>\n
Ria also said the company was in the final stages of its debt
\nrestructuring process and expected to reach an agreed with
\nlenders soon.<\/p>\n
The company's short-term debts amounted to Rp 8.08 trillion as
\nof June 30, an increase from Rp 1.82 trillion last year.<\/p>\n
Indocement is one of the companies surrendered by the widely
\ndiversified Salim Group to the Indonesian Banking Restructuring
\nAgency (IBRA) as payment for liquidity support extended to the
\ngroup's Bank Central Asia.<\/p>\n
Ria said IBRA was currently holding about 20 percent of
\nIndocement's shares.<\/p>\n
She said Indocement was currently 38.7 percent owned by the
\nSalim Group through PT Mekar Perkasa, 25.73 percent by the
\ngovernment, 20 percent by IBRA and the remainder by the public.<\/p>\n
Ria said Mekar Perkasa's stake in Indocement had been reduced
\nto 38.7 percent from 55.08 percent following the taken over of
\npart of Mekar Perkasa shares by IBRA.<\/p>\n
Indocement is the country's second largest cement producer and
\nhas 38 percent of the country's cement market.<\/p>\n
Last week, Indocement announced a consolidated net income of
\nRp 558.47 billion (about US$74.5 million) in the first semester
\nending on June 30, up from Rp 3.32 billion in the same period
\nlast year, bolstered by a hefty foreign exchange gain of Rp
\n361.65 billion during the January-June period.<\/p>\n
Indocement's income from operations dropped 14.92 percent in
\nthe first six months to Rp 192.59 billion compared to Rp 226.36
\nbillion during the same period in 1998.<\/p>\n
The company said cement and clinker overall sales volume
\ndeclined 7.88 percent to 3.34 million metric tons as a result of
\nlower domestic demand. Exports rose 61.04 percent to 926,000
\ntons, about 27.72 percent of total sales during the six-month
\nperiod.<\/p>\n
Ria said that exports would become Indocement's mainstay to
\ngain revenue.<\/p>\n
\"We will raise our exports in the second half of this year and
\nnext year. But the portion of domestic sales will be still bigger
\nthan the products exported,\" she said.<\/p>\n
Ria also said the shareholders meeting on Tuesday decided to
\nretain tycoons Sudwikatmono and Soedono Salim as the company's
\npresident and chief commissioner respectively for the 1999\/2004
\nperiod.<\/p>\n
Sudwikatmono is former president Soeharto's cousin, while
\nSudono Salim is one of Soeharto's close friends.<\/p>\n
The shareholders meeting also decided to appoint I Ketut
\nMardjana, the director of manufactured industries at the Office
\nof the State Minister of the Empowerment of State Enterprises, as
\na commissioner, replacing Aang Kunaefi, who has retired. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indocement-to-launch-rights-issue-1447893297",
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