Cemex SA wants Gresik stake

Cemex SA wants Gresik stake

MONTERRY, Mexico (Bloomberg): Mexico's Cemex SA said Wednesday
it is still interested in a stake in cement maker PT Semen Gresik
if authorities give the world's third-largest cement maker a
management role in the state-owned company.

Cemex and Indonesian officials are holding talks to work out
terms of the sale that satisfy both parties, Cemex said in a news
release.

The government originally offered to sell 35 percent of its 65
percent stake in Gresik, but scaled that back to 14 percent under
pressure from the people.

"Despite the actual global economic atmosphere, Indonesia is
an attractive market for Cemex and offers favorable long-term
growth perspectives," said Hector Medina, Cemex director of
planning and finances, in the release.

Cemex said it's interested in pursuing a 14 percent stake in
Gresik, which would mean the company won't be buying shares from
the small investors that now own 35 percent of Gresik.

Gresik shares have rallied in recent weeks on speculation
Cemex would be making a general offer for the shares at a premium
to the market price.

Cemex originally bid $418 million to buy a controlling 51
percent share of the state-owned Gresik, including the
government's stake and a 16 percent stake held by individual
investors. The per share price was $1.38.

Now Cemex said it is willing to purchase a minority share of
Gresik if it also gets management participation "that permits
Cemex to meet the investment criteria it has established," the
company said in the release.

"Additionally, that would permit Gresik to benefit from
Cemex's administrative experience," the company said.

The release didn't make clear if Cemex wanted full control of
operations or is willing to share management with the government.

A spokesman for Cemex said he couldn't provide further
information.

Cemex could be willing to make a similar transaction with
Gresik as it did in the Philippine's Rizal Cement Co., in which
Cemex bought a 30 percent stake in October and signed a
management contract to run the company.

The Rizal transaction handed Cemex control over management
even though it owns a minority stake.