Gresik to take over two firms
JAKARTA (JP): Publicly-listed state-owned cement company PT Semen Gresik announced yesterday that it will acquire two other state-owned cement companies, PT Semen Padang and PT Semen Tonasa, at a total price of Rp 1.06 trillion (US$479 million).
With the purchase of the two companies, Semen Gresik will secure its position as the country's second-largest cement producer, with an installed annual production capacity of 8.58 million tons of cement. Its output will be only slightly behind that of publicly-listed PT Indocement Tunggal Prakarsa, which has an annual production capacity of 9.2 million tons.
Anang Fuad Rivai, president of Semen Gresik, said the purchase of the two companies was in line with his company's business strategy to increase its production capacity, improve operational efficiency and improve market penetration.
"These initiatives will elevate this group of companies into the only cement producer with three brand names as well as nationwide distribution and production facilities located strategically in the archipelago," Anang said.
Semen Padang, with its plant in Padang, West Sumatra, currently has a designed production capacity of 3.27 million tons per year and distributes its products throughout Sumatra as well as Java.
Semen Tonasa, located in Ujungpandang, South Sulawesi, is the only producer of cement in Sulawesi, with an annual production capacity of 1.18 million tons. It expects to complete the construction of a new production unit plant with an annual capacity of 2.33 million tons by the end of this year.
"With the completion of this new unit at Semen Tonasa, the group of companies will have a combined annual capacity of 10.88 million tons, making it the largest among cement producers in Indonesia," Semen Gresik said in a statement, a copy of which was made available to The Jakarta Post yesterday.
Valuation
The valuation of Semen Padang and Semen Tonasa was determined by valuer Capelle Surjadinata & Setiawan, a member of Deloitte Touche Tohmatsu International. In addition, Goldman Sachs Asia Pacific L.L.C. also presented its valuation to Semen Gresik's boards of directors and commissioners.
Semen Gresik, listed on the Jakarta Stock Exchange in 1991, was the first state-owned enterprise to be privatized. Last year, it recorded net sales of Rp 309 billion and a net profit of Rp 54.7 billion.
The company yesterday also announced that it will conduct a rights issue of 444 million shares, with PT Bahana Securities and PT HG Asia Indonesia as its underwriters and PT Bahana Pembina Usaha Indonesia as its financial advisor.
The rights issue, the company said, is subject to approval from the Capital Markets Supervisory Agency and a shareholders' extraordinary general meeting scheduled for July 18.
The offering period for the rights is expected to open on Aug. 7 and to close on Sept. 7. Holders of common shares will be entitled to subscribe three rights shares for each of their old shares at a proposed exercise price of Rp 3,275.
The company said it would use the proceeds from the rights offering primarily to finance the purchase of Semen Padang and Semen Tonasa and to strengthen its capital. (rid)