Three foreign firms bid for stake in Semen Gresik<\/p>\n
JAKARTA (JP): At least three international cement producers
\nare to bid for part of the government's 65 percent stake in
\npublicly-listed PT Semen Gresik cement company.<\/p>\n
Semen Gresik president Urip Timuryono said yesterday the three
\ncompanies were Germany's Heidelberger Zement AG, Switzerland's
\nHolderbank Financiere Glarus and Mexico's Cemex CA.<\/p>\n
\"The three companies have conducted their due diligence and
\nare to offer their bids to the state minister for Empowerment of
\nState Enterprises today (Friday),\" he told the media after a
\nshareholder's meeting here yesterday.<\/p>\n
He said that the company's management was not involved in the
\nselection of the bidders but the opinions of Semen Gresik's
\nmanagement were taken into consideration.<\/p>\n
\"Though we are not involved, we proposed certain criteria for
\nour new partners,\" he said.<\/p>\n
These included an extensive global marketing network, the
\nability to develop the product and business and a strong
\ninformation technology (IT) system.<\/p>\n
\"We think the three companies have met our criteria,\" he said.<\/p>\n
Urip said that other international investors were still
\nwelcome to join the bidding process as no deadline had been set,
\nor passed, for bids to be submitted.<\/p>\n
Informed sources have said that four other international
\nbidders are likely to be Blue Circle and Readymix Concrete of
\nEngland, Lafarge of France, Italcementi of Italy.<\/p>\n
Urip, however, declined to mention the proportion of the 65
\npercent government stake being put up for sale. The remaining 35
\npercent is owned by the public.<\/p>\n
Urip said whether the government would give up its majority
\ncontrol of Semen Gresik would depend on the proposals offered by
\nthe potential strategic investors.<\/p>\n
\"The government is pleased with this level of interest from
\nmajor multinational companies which demonstrates high foreign
\ninvestor interest in Indonesia despite its dire economic
\ncondition. The candidates are also committed to expanding cement
\nexports from Indonesia,\" State Minister for the Empowerment of
\nState Enterprises Tanri Abeng said in a press statement later in
\nthe afternoon.<\/p>\n
Michael Staheyeff, corporate finance director of Jardine
\nFleming, the foreign financial advisor for Semen Gresik, said
\nthat it was difficult to set the timetable for the bidding
\nprocess.<\/p>\n
\"The timetable is not possible to say precisely. It's the
\nnature of this kind of process,\" he said, but added that it might
\ntake more than one and half month.<\/p>\n
The government recently appointed Jardine Fleming to help it
\nsell off its 65 percent of Semen Gresik.<\/p>\n
The government has also appointed nine international
\ninvestment banks, including Goldman Sachs, Lehman Brothers,
\nCredit Suisse First Boston, UBS\/SBC Warburg Dillon Read, Salomon
\nSmith Barney and Jardine Fleming to assist the government in the
\npartial privatization of seven listed companies.<\/p>\n
The government plans to privatize seven state companies and
\ndivest more stakes in five publicly listed state companies in the
\n1998\/1999 fiscal year to raise Rp 15 trillion (US$1 billion) to
\nsupport the financially strained state budget. (aly\/rei)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/three-foreign-firms-bid-for-stake-in-semen-gresik-1447893297",
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"sponsor": "Okusi Associates",
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