Heidelberger plans to acquire Indocement

Heidelberger plans to acquire Indocement

FRANKFURT (AFX): Heidelberg Zement AG said it reached an
agreement with the Indonesian government and three other
Indonesian parties to acquire the country's second largest cement
producer PT Indocement Tunggal Prakarsa TbK.

A statement issued here said the agreement, signed end-
December, was also with Indonesia's IBRA, the state-run agency in
charge of restructuring financial institutions, as well as the
two companies PT Mekar Perkasa and PT Kaolin Indah Utama.

It said the acquisition will take place in three stages, which
comprise the sale of shares held by IBRA, Mekar and Kaolin, the
exercise of a rights issue as well as the conversion of
Indocement debts to be absorbed by Heidelberger into equity worth
about US$150 million.

Heidelberger's spokesman was not immediately available to
clarify details.

The deal is expected to be closed end-March, the statement
said.

It said Indocement's debts will be absorbed by Heidelberger
and a debt restructuring plan will be implemented.

It said Heidelberger will temporarily not consolidate
Indocement in its books.

The acquisition will be carried out through the financial
holding Heidelberger Zement South-East Asia, a joint venture
between Heidelberger and its German financial partners, which
were not named in the statement.

This holding will hold more than 50 percent of Indocement
shares after the closing of the agreement, it said.

It said Indocement, Indonesia's second largest cement
producer, has three plants with total capacity of 15.8 million
tons.

The acquisition will increase Heidelberger's cement capacity
by 25 percent and significantly increase its position in Asia, it
added.