Mexico's Cemex prepared to buy another six percent in Semen Gresik
JAKARTA (JP): Mexico's Cemex SA will buy another 6 percent stake in PT Semen Gresik through an open market beginning next week, to increase its shares in the country's largest cement producer to 20 percent.
Mexico's Cemex, the third largest cement maker in the world, announced on Wednesday that the six percent stake would equal 35.58 million shares.
The Semen Gresik shares will be bought at a minimum of US$1.38, or Rp 10,255, per share on the open market, Cemex said.
"This will be equal to a total value of $49.11 million," the announcement stated.
The company said that the offering period would be open from Nov. 30 to Jan. 4, 1999, while the allotment and payment dates would be made on Jan. 12 and Jan. 15 respectively.
However, the market gave a cool response to the tender offer, with Semen Gresik share prices losing Rp 250 in moderate training, to end the day at Rp 7,725.
The purchase of the 6 percent stake through a tender offer is part of the deal agreed upon with the Indonesian government for Cemex to increase its stake to 25 percent in Semen Gresik.
The Indonesian government sold a 14 percent stake in Semen Gresik in September for $114.6 million, or $1.38 per share.
Cemex said early last month that it remained committed to increasing its stake to 25 percent in Semen Gresik, in order to qualify for two seats on the board of commissioners.
At present, the Mexican company has two seats on the board of management.
Semen Gresik is one of the six state companies which has been put on the government's privatization program this fiscal year.
The other state firms marked for privatization are sea port operator PT Pelindo II, airport operator PT Angkasa Pura II, plantation firm PT Perkebunan Nusantara IV, publicly listed mining firm PT Aneka Tambang and international call operator PT Indosat.
The government has decided to privatize six state firms rather than the originally planned number of 12, due to the country's bearish stock market. (aly)