Indian giant eyes Maspion stake

The Jakarta Post, Jakarta

India's Jindal Organization has expressed formal interest in acquiring a majority stake in Indonesian steel producer PT Maspion Stainless Steel Indonesia (MSSI), a subsidiary of Surabaya-based conglomerate Maspion Group.

Executive managing director of Maspion Group Alim Satria told The Jakarta Post on Monday that India's flagship stainless steel producer, Jindal Stainless Ltd., was engaged in talks with Maspion over the possible purchase of a controlling stake in MSSI.

"However, the price offered by Jindal is too low. We want them to raise their offer," said Alim, who is also MSSI president director.

Alim declined to elaborate further, but a report said Jindal Stainless, with assets valued at US$418 million, had offered about $30 million.

Jindal Organization is India's sixth largest business group, with assets worth $2 billion.

Its subsidiary Jindal Stainless has an annual production volume of 500,000 tons, accounting for 40 percent of Indian demand for stainless steel.

The Gresik-based MSSI, a joint-venture company between Maspion and publicly listed PT Alumindo Light Metal Industry, is the first company in Indonesia to have implemented a cold-rolled stainless steel manufacturing facility.

The Maspion Group, which started out in 1965 as a kitchen appliance manufacturer, is among the country's top-tier conglomerates, with businesses ranging from consumer durable goods, electrical household appliances and plastic housewares. -- JP