Semen Gresik to float rights shares<\/p>\n
JAKARTA (JP): The minority shareholders of the publicly-listed
\nstate-owned cement firm PT Semen Gresik voted yesterday in favor
\nof the company's proposal to acquire two other state-run cement
\ncompanies, PT Cement Padang and PT Semen Tonasa.<\/p>\n
Semen Gresik's president, Anang Fuad Rivai, told journalists
\nafter an extraordinary meeting of shareholders at the Hilton
\nExecutive Club that the company had secured 54.47 percent of
\nminority votes.<\/p>\n
Those opposed to the acquisition plan represented 369,000
\nshares, only 1.01 percent of the total 36.44 million minority
\nshares, and abstentions represented 307,000 shares, Anang said.<\/p>\n
Under Indonesian regulations, any public company's move to
\nacquire another company needs the approval of its minority
\nshareholders.<\/p>\n
Semen Gresik announced early last month its plans to
\nconsolidate its production capacity with that of the two cement
\ncompanies.<\/p>\n
Anang said that the acquisition of the two cement firms would
\nenable Semen Gresik to improve operational efficiency and market
\npenetration with nationwide distribution.<\/p>\n
He said Semen Gresik, with its production units in Gresik and
\nTuban, East Java, focuses distribution in East and Central Java
\nand Semen Padang, with its plant in Padang, West Sumatra, serves
\nwestern provinces, while Semen Tonasa, with its production
\nfacilities in Tonasa, South Sulawesi, concentrates on marketing
\nin the eastern provinces.<\/p>\n
Rights<\/p>\n
Yesterday's meeting also approved Semen Gresik's plan to float
\n444,846,000 rights shares at an offered price of Rp 3,275
\n(US$1.47) per share to finance the acquisition and expand the
\ncompany's production capacity.<\/p>\n
\"Shareholders can buy three rights shares for each of their
\nexisting shares,\" Anang said, adding that the rights issue would
\nbe held on Aug. 7.<\/p>\n
He said the acquisition of the two cement firms would cost
\nSemen Gresik Rp 1.06 trillion ($478 million) or about 74 percent
\nof the capital to be raised. Five percent of the proceeds will be
\nused to repay the debts and strengthen the capital structure of
\nSemen Padang, while the rest will be used to expand Semen
\nGresik's own production capacity.<\/p>\n
Semen Gresik was initially scheduled to conduct an
\nextraordinary shareholders' meeting last Tuesday. However, the
\nmeeting was unexpectedly adjourned until yesterday after Anang
\nwas suddenly summoned by Minister of Industry Tunky Ariwibowo
\nwhen the meeting was about to start.<\/p>\n
Many speculated that the postponement of last Tuesday's
\nmeeting was prompted by pressure from the country's current
\nlargest cement producer PT Indocement Tunggal Prakarsa, which
\ndoes not want its market standing to be shaken by Semen Gresik
\nafter the consolidation.<\/p>\n
\"It had nothing to do with Indocement. Pak Ari (Minister
\nTunky) just wanted to give me some jobs to do because he was
\nabout to go abroad for post-CGI meetings,\" Anang said, referring
\nto the World Bank-sponsored Consultative Group on Indonesia
\n(CGI), which pledged on Wednesday to help Indonesia with total
\naid of $5.36 billion.<\/p>\n
The acquisition of the two cement firms will boost Semen
\nGresik's annual production capacity to 8.58 million tons from the
\ncurrent 4.1 million tons. Semen Padang's current annual capacity
\nstands at 3.3 million tons, while Semen Tonasa's is 1.3 million
\ntons.<\/p>\n
After the completion of the construction of Semen Tonasa's new
\nproduction unit next year, Semen Gresik will have a combined
\nannual capacity of 10.88 million tons, making it the largest
\namong cement producers in Indonesia. Currently, Indocement is the
\nlargest cement producer, with a capacity of 9.2 million tons per
\nannum.<\/p>\n
Anang said Semen Gresik started building a new cement
\nproduction facility in Tuban early this year. The construction of
\nthe new facility, which will have an annual capacity of 2.3
\nmillion tons, will be completed by the middle of 1997 and will
\nstart commercial production by early 1998.<\/p>\n
Semen Gresik plans to start constructing another cement
\nproduction unit in Tuban later this year. The unit, which will
\nalso have an annual capacity of 2.3 million tons, is expected to
\nstart commercial production in the middle of 1998.<\/p>\n
The company plans to build a new cement production unit with
\nan annual capacity of 2.3 million tons in Indarung, West Sumatra,
\nearly next year, which is expected to start commercial production
\nin 1998.<\/p>\n
\"In 1998, our combined annual capacity will reach 17.8 million
\ntons. And it will still be the largest producer in the country,\"
\nAnang said.<\/p>\n
Semen Gresik, listed on the Jakarta Stock Exchange in 1991 and
\nthe first state-owned Indonesian enterprise to be privatized,
\nrecorded net sales of Rp 309 billion and a net profit of Rp 54.7
\nbillion last year. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/semen-gresik-to-float-rights-shares-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}