Supreme Court rules for Semen Gresik<\/p>\n
Fitri Wulandari, The Jakarta Post, Jakarta<\/p>\n
The Supreme Court has ruled in favor of state-owned cement
\nproducer PT Semen Gresik (SG) to hold an extraordinary
\nshareholders meeting to replace the board of directors at its
\nrebellious subsidiary PT Semen Padang.<\/p>\n
\"The Supreme Court ruling says we are allowed to hold an
\nextraordinary shareholders meeting at PT Semen Padang to replace
\nits board of directors and board of commissioners,\" SG president
\nSatriyo told journalists at a press conference on Tuesday.<\/p>\n
\"SG still legally owns 99.9 percent of Semen Padang.
\nTherefore, SG has the obligation to improve the performance of
\nSemen Padang,\" he stressed.<\/p>\n
SG is a parent company for two subsidiaries namely Semen
\nPadang (in West Sumatra) and PT Semen Tonasa (in South Sulawesi).
\nThe three have a combined production capacity of 17.25 million
\nmetric tons, making SG the largest cement maker here, controlling
\na 45 percent share of Indonesia's cement market.<\/p>\n
The Supreme Court's decision might be a light at the end of
\ntunnel for SG which has been mired in conflict with Semen Padang
\nover a government privatization plan.<\/p>\n
When question if SG will replace the current Semen Padang with
\nprivatization supporters, Satriyo said, \"We want to replace it
\n(the management) with business-minded people who will develop the
\ncompany. Any good development will bring good things for all
\nshareholders.\"<\/p>\n
SG is 51 percent owned by the government, 23.46 percent by the
\npublic and 25.53 percent by Mexico's Cemex SA de CV who became SG
\nshareholders in 1998.<\/p>\n
The conflict between SG and Semen Padang centered around the
\nlatter's rejection of a government plan to sell another 51
\npercent stake in SG to Cemex.<\/p>\n
Since then demands for a spin-off of Semen Padang from SG had
\nbeen mounting forcing the government to delay the privatization.<\/p>\n
Semen Padang has rejected SG's plan to hold an extraordinary
\nshareholders meeting to replace Semen Padang's board of directors
\nand commissioners.<\/p>\n
State Minister for State Enterprises Laksamana Sukardi has
\nrecently sent a letter to the governor of West Sumatra approving
\nthe demand for a spin-off as long as it did not violate the law.<\/p>\n
But Satriyo stressed that any decision for a spin-off lies in
\nthe hands of SG's minority shareholders including Cemex.<\/p>\n
Legislation on limited liability companies and capital market
\nrule that any major corporate action should have approval of
\nminority shareholders.<\/p>\n
The spin-off plan is unfavorable as it will not only harm
\ninvestor confidence but also force the government to set aside
\nhefty compensation for SG's minority shareholders. Semen Padang
\nand Semen Tonasa assets were counted when investors bought shares
\nin PT Semen Gresik.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/supreme-court-rules-for-semen-gresik-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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