Govt to seek 200% premium Gresik
JAKARTA (JP): State Minister of the Empowerment of State Enterprises Tanri Abeng said on Thursday the government would seek a minimum 200 percent price premium for its 14 percent stake in publicly listed cementmaker PT Semen Gresik.
"The 200 percent premium will be the minimum price formula for Gresik's shares. If possible we can sell higher than that," Tanri told journalists on the sidelines of a seminar on the Brazilian privatization experience.
Semen Gresik's stock price closed Rp 1,200 higher at Rp 8,075 on Thursday.
Tanri said the second round bidding process, which was delayed due to the change in the government's privatization formula, had resumed.
"Negotiations are underway, hopefully they will be concluded by the end of this month."
He said bidders would include the winner of the first bidding round, Mexico's Cemex SA, as well as Germany's Heidelberger Zement AG, Switzerland's Holderbank and France's Laferge Asia Pacific.
"If Cemex wants to be the winner, it has to top other bidders or risk losing in the second bidding," he said.
The privatization hit a stalemate in July due to widespread public protests.
The government caved in to opposition from communities in West Sumatra and East Java in that month. It revised the terms of the privatization and agreed to divest only 14 percent.
Escalating protests by West Sumatrans had also forced the government to extend the deadline of the second bidding process from Aug. 19.
West Sumatrans objected to the government's privatization plan which would have allowed foreign strategic partners to control a majority stake in PT Semen Padang, one of Semen Gresik's wholly owned subsidiaries.
Under the former plan, the government selected Mexico's Cemex as the preferred bidder to buy a 35 percent share for US$287 million, or $1.38 (above Rp 15,000) per share.
The plan also allowed for the company to purchase another 16 percent stake through a tender offer mechanism in the local market.
Tanri said on Thursday that talks with Semen Gresik's foreign strategic partners had been proceeding well ahead of the conclusion of the bidding later this month.
"Everything has run smoothly so far," he said.
Cemex SA said on Wednesday it was still interested in a stake Semen Gresik if authorities gave the world's third-largest cementmaker a management role in the state-owned company.
"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 a media statement.
Semen Gresik is one of the 12 state-owned companies prepared for privatization this fiscal year to raise a total of $1.5 billion. It will be utilized to assist the current budget in financing the various subsidy commitments which amount to 8.5 percent of gross domestic product. (aly)