Govt to seek 200% premium Gresik
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)