Shareholders approve Semen Cibinong deposit sale

Shareholders approve Semen Cibinong deposit sale

Shareholders of the 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 passed 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 non affiliated creditors as an
integral part of the debt restructuring," Semen Cibinong said in
a press relase 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 shareholders approving 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 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 purchase all remaining stake from Semen Cibinong's
current single majority shareholder, PT Tirtamas Majutama, owned
by business tycoon Hashim Djojohadikusumo. - JP