Boral raises RI stake

Boral raises RI stake

SYDNEY (Reuters): Building products group Boral Ltd said yesterday it had increased its share in Indonesian concrete company PT Jaya Readymix to 90 percent from 50 percent. Terms were not disclosed.

Boral said the PT Jaya Readymix joint venture commenced in 1972 as the first readymix concrete producer in Indonesia, and was the largest concrete operator in the Indonesian market.

"Our joint venture partner, PT Pembangunan Jaya offered Boral the opportunity to purchase 80 percent of its shareholding in PT Jaya Readymix," Boral managing director Tony Berg said.

"We believe this is a good investment in a strong business with a leading market share," he said. Berg said the Indonesian operation was one of the company's more profitable businesses in the region and the purchase of the 40 percent stake came at a time when assets could be purchased at good values.

A company spokesman later said Boral had been involved in Indonesia for 25 years and was taking a long term view about the local economy.