HZ buys into Indocement

HZ buys into Indocement

JAKARTA (JP): Heidelberger Zement Group (HZ) of Germany has
agreed to take over US$250 million of debts from PT Indocement
Tunggal Prakarsa and convert them into shares in the company, the
publicly listed Indonesian cement giant said.

The deal is part of an agreement signed on Friday between the
German group and Indocement's two major shareholders, PT Mekar
Perkasa and PT Kaolin Indah Utama, to set up a 50/50 joint
venture company to control Indocement.

The recapitalization will be carried out through a rights
issue open to all shareholders, Indocement said, adding that the
agreement was subject to the completion of its debt restructuring
and approval of the rights issue by the general shareholders
meeting. (10)