Indian giant eyes Maspion stake

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