Semen Gresik seeks Rp 1.45t from rights issue<\/p>\n
JAKARTA (JP): Publicly-listed PT Semen Gresik expects to raise
\naround Rp 1.45 trillion (US$653 million) from its rights issue
\nnext month.<\/p>\n
Semen Gresik's president, Anang Fuad Rivai, said over the
\nweekend that part of the proceeds from the rights issue will be
\nused to take over PT Semen Padang in West Sumatra and PT Semen
\nTonasa in South Sulawesi.<\/p>\n
Another segment of the proceeds from the limited public
\noffering will be used to finance the expansion of the two cement
\nproducers, Anang explained.<\/p>\n
He said the rights issue will be launched next month at a one-
\nfor-three ratio, in which each existing share will give
\nshareholders the right to buy three new shares.<\/p>\n
The rights shares will be sold to existing shareholders at Rp
\n3,375 ($1.53) apiece, around 80 percent lower than last week's
\naverage price.<\/p>\n
Anang said the planned acquisition, which will cost around Rp
\n1.06 trillion ($479 million), is expected to boost Semen Gresik's
\nproduction capacity to 8.58 million tons per year from 4.1
\nmillion tons at present.<\/p>\n
He said the planned takeover of the two cement producers will
\nmake Semen Gresik the second largest cement producer in the
\ncountry after the publicly-listed Indocement, which has a
\nproduction capacity of around 9.2 million tons per year.<\/p>\n
Price<\/p>\n
The share price of Semen Gresik, the first state-owned company
\nlisted on the Jakarta Stock Exchange, has gained ground in recent
\nmonths following the announcement of the company's takeover plan
\nin April. The share price of the East Java-based cement producer
\nreached its peak level on Friday, closing at Rp 14,950, almost
\ndouble its level of Rp 7,500 in January.<\/p>\n
The government's plan to consolidate Semen Padang and Semen
\nTonasa into Semen Gresik was announced in April after the first
\ntwo failed to carry out their own initial public offering plans.<\/p>\n
The two cement producers' plans to launch initial public
\nofferings were announced as early as 1992, but they suspended the
\nbusiness maneuvers due to what their managements called
\nunfavorable market conditions.<\/p>\n
Securities analysts said the heavy financial burden the two
\ncement producers faced in preparing for the initial public
\nofferings was even more of a hindrance than the market problem.<\/p>\n
\"The back listing through Semen Gresik will significantly
\nreduce the financial costs,\" an analyst at a local brokerage
\ncompany said.<\/p>\n
Semen Padang, which currently produces around 3.27 million
\ntons of cement per year, sells its cement products in Sumatra and
\nseveral parts of West Java.<\/p>\n
Semen Tonasa, the only cement producer in South Sulawesi,
\nproduces around 1.18 million tons per year and sells its products
\nin Sulawesi and other eastern Indonesian provinces. (hen)<\/p>",
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