Semen Gresik deal to be completed by weekend: Official<\/p>\n
JAKARTA (JP): Negotiations on the sale of parts of the
\ngovernment's 65 percent stake in cement producer PT Semen Gresik
\nto two foreign firms are expected to be completed this weekend,
\nan official said.<\/p>\n
Herwidayatmo, a deputy to the State Minister for the
\nEmpowerment of State Enterprises, said on Wednesday night that
\nthe government basically agreed with the offers made by Cemex CA
\nof Mexico and Holderbank Financiere Glarus of Switzerland.<\/p>\n
\"After everything is settled, I think within one to two days
\nwe will ask the finance minister to sign the sales purchasing
\nagreement,\" he said.<\/p>\n
News of the possible entrance of two foreign firms into the
\ncompany has triggered a jump of 50 percent in its stock price
\nsince early May and prompted the Jakarta Stock Exchange to
\nsuspend trading in the shares until the business has been
\nsettled.<\/p>\n
Stocks in Semen Gresik rose to as high as Rp 9,250 on
\nWednesday after opening the day on Rp 8,400. When trading was
\nsuspended shares were priced at Rp 9,150.<\/p>\n
The total transaction value that day was around Rp 27.5
\nbillion.<\/p>\n
Sofyan A. Djalil, another deputy to the state minister, said
\nthe suspension was at the request of Semen Gresik and was
\ndesigned to prevent investors from profiting from the
\nnegotiations with the two international cement firms.<\/p>\n
\"It is feared that news on the presence of international
\ninvestors will only benefit certain people,\" he said.<\/p>\n
State Minister for the Empowerment of State Enterprises Tanri
\nAbeng said the two international players had offered a price in
\nexcess of Semen Gresik's current market price.<\/p>\n
\"News of this triggered the rise in share prices,\" he said on
\nWednesday.<\/p>\n
Some brokers said there were rumors that Cemex and Holderbank
\nFinanciere Glarus had submitted bids of between US$0.9 and $1 per
\nshare (equivalent to Rp 14,700 at the current exchange rate) for
\nSemen Gresik.<\/p>\n
Semen Gresik, one of 12 state enterprises to be privatized by
\nthe government this year, has been under the spotlight in recent
\nweeks after the Capital Market Supervisory Agency (Bapepam) set
\nup an investigation team to probe alleged insider trading in the
\ncompany's stock.<\/p>\n
The investigation is still going on.<\/p>\n
An official from Bapepam said yesterday that the agency had
\nsummoned several securities firms which were suspected of
\ninvolvement in the alleged insider trading.<\/p>\n
\"We have not come to a conclusion yet,\" the official who asked
\nfor anonymity said.<\/p>\n
Previous reports alleged that several securities firms,
\nincluding PT Bahana Securities, PT Danareksa Sekuritas and PT
\nJardine Fleming Nusantara, who are all in-house advisors in the
\nprivatization of Semen Gresik, were involved in the scam
\nthroughout May and June this year. Also tainted by the
\nallegations were PT Bhakti Investama, PT ING Barings Indonesia
\nand PT Indosuez WICarr Indonesia.<\/p>\n
Tanri said that he fully supported the Bapepam move to
\ninvestigate the illegal trading.<\/p>\n
\"This is especially important to maintain both the good
\nstanding of my office and the image of our capital market,\" Tanri
\nsaid. (rid)<\/p>",
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"sponsor": "Okusi Associates",
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