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)