Semen Gresik seeks Rp 1.45t from rights issue
Semen Gresik seeks Rp 1.45t from rights issue
JAKARTA (JP): Publicly-listed PT Semen Gresik expects to raise
around Rp 1.45 trillion (US$653 million) from its rights issue
next month.
Semen Gresik's president, Anang Fuad Rivai, said over the
weekend that part of the proceeds from the rights issue will be
used to take over PT Semen Padang in West Sumatra and PT Semen
Tonasa in South Sulawesi.
Another segment of the proceeds from the limited public
offering will be used to finance the expansion of the two cement
producers, Anang explained.
He said the rights issue will be launched next month at a one-
for-three ratio, in which each existing share will give
shareholders the right to buy three new shares.
The rights shares will be sold to existing shareholders at Rp
3,375 ($1.53) apiece, around 80 percent lower than last week's
average price.
Anang said the planned acquisition, which will cost around Rp
1.06 trillion ($479 million), is expected to boost Semen Gresik's
production capacity to 8.58 million tons per year from 4.1
million tons at present.
He said the planned takeover of the two cement producers will
make Semen Gresik the second largest cement producer in the
country after the publicly-listed Indocement, which has a
production capacity of around 9.2 million tons per year.
Price
The share price of Semen Gresik, the first state-owned company
listed on the Jakarta Stock Exchange, has gained ground in recent
months following the announcement of the company's takeover plan
in April. The share price of the East Java-based cement producer
reached its peak level on Friday, closing at Rp 14,950, almost
double its level of Rp 7,500 in January.
The government's plan to consolidate Semen Padang and Semen
Tonasa into Semen Gresik was announced in April after the first
two failed to carry out their own initial public offering plans.
The two cement producers' plans to launch initial public
offerings were announced as early as 1992, but they suspended the
business maneuvers due to what their managements called
unfavorable market conditions.
Securities analysts said the heavy financial burden the two
cement producers faced in preparing for the initial public
offerings was even more of a hindrance than the market problem.
"The back listing through Semen Gresik will significantly
reduce the financial costs," an analyst at a local brokerage
company said.
Semen Padang, which currently produces around 3.27 million
tons of cement per year, sells its cement products in Sumatra and
several parts of West Java.
Semen Tonasa, the only cement producer in South Sulawesi,
produces around 1.18 million tons per year and sells its products
in Sulawesi and other eastern Indonesian provinces. (hen)
JAKARTA (JP): Publicly-listed PT Semen Gresik expects to raise
around Rp 1.45 trillion (US$653 million) from its rights issue
next month.
Semen Gresik's president, Anang Fuad Rivai, said over the
weekend that part of the proceeds from the rights issue will be
used to take over PT Semen Padang in West Sumatra and PT Semen
Tonasa in South Sulawesi.
Another segment of the proceeds from the limited public
offering will be used to finance the expansion of the two cement
producers, Anang explained.
He said the rights issue will be launched next month at a one-
for-three ratio, in which each existing share will give
shareholders the right to buy three new shares.
The rights shares will be sold to existing shareholders at Rp
3,375 ($1.53) apiece, around 80 percent lower than last week's
average price.
Anang said the planned acquisition, which will cost around Rp
1.06 trillion ($479 million), is expected to boost Semen Gresik's
production capacity to 8.58 million tons per year from 4.1
million tons at present.
He said the planned takeover of the two cement producers will
make Semen Gresik the second largest cement producer in the
country after the publicly-listed Indocement, which has a
production capacity of around 9.2 million tons per year.
Price
The share price of Semen Gresik, the first state-owned company
listed on the Jakarta Stock Exchange, has gained ground in recent
months following the announcement of the company's takeover plan
in April. The share price of the East Java-based cement producer
reached its peak level on Friday, closing at Rp 14,950, almost
double its level of Rp 7,500 in January.
The government's plan to consolidate Semen Padang and Semen
Tonasa into Semen Gresik was announced in April after the first
two failed to carry out their own initial public offering plans.
The two cement producers' plans to launch initial public
offerings were announced as early as 1992, but they suspended the
business maneuvers due to what their managements called
unfavorable market conditions.
Securities analysts said the heavy financial burden the two
cement producers faced in preparing for the initial public
offerings was even more of a hindrance than the market problem.
"The back listing through Semen Gresik will significantly
reduce the financial costs," an analyst at a local brokerage
company said.
Semen Padang, which currently produces around 3.27 million
tons of cement per year, sells its cement products in Sumatra and
several parts of West Java.
Semen Tonasa, the only cement producer in South Sulawesi,
produces around 1.18 million tons per year and sells its products
in Sulawesi and other eastern Indonesian provinces. (hen)