Semen Cibinong deposit sale approved

Shareholders of publicly listed cement producer PT Semen Cibinong approved on Monday the planned sale of the company's controversial missing deposits worth US$250 million.

"... shareholders approved the sale of time deposits held by it (Semen Cibinong) and its subsidiary, PT Trumix Beton, to an independent third party company. (The sale) is to be held for the benefit of (Semen Cibinong's) its nonaffiliated creditors as an integral part of the debt restructuring," Semen Cibinong said in a press release on its extraordinary shareholders' meeting in Jakarta.

Semen Cibinong did not say whether a company was interested in purchasing its deposits, and at what price it would offer them.

But the approval of the planned sale may signal the end of the controversy surrounding the missing deposits.

Speculation rose that the $250 million in deposits went missing after Semen Cibinong was unable to withdraw the funds from two banks located in Vanuatu and Cook Islands.

Last June the shareholders approved a management proposal to write off the deposits from the balance sheet, but demanded efforts be made to recoup the missing funds.

The write-off was a vital part of the company's $1.2 billion debt restructuring deal with creditors.

Under a debt to equity deal, Semen Cibinong's creditors would sell the debts to Swiss-based cement company Holcim Ltd. The latter would convert the debts into a controlling stake in Semen Cibinong.

Holcim will purchase all remaining stake from Semen Cibinong's current single majority shareholder, PT Tirtamas Majutama, owned by business tycoon Hashim Djojohadikusumo. - JP