Swiss firm to control PT Semen Cibinong

JAKARTA (JP): Swiss cement giant Holderbank Financiere Glarus AG has agreed to increase its stake in publicly listed cement producer PT Semen Cibinong to become a controlling shareholder of the company.

Semen Cibinong said in a statement on Thursday that Holderbank would provide significant capital investment which would speed the restructuring of Semen Cibinong's US$1.2 billion debt.

"The restructuring and investment will enable Holderbank Financiere Glaris Ltd. to become a majority shareholder in PT Semen Cibinong and to incorporate Semen Cibinong as a major operating company within the Holderbank Financiere Glaris Ltd.'s group of companies," the statement said.

It said Holderbank would hold a due diligence later this month to determine the value of capital funds it will inject into the company.

Cibinong spokesman Jannus Hutapea said Holderbank needs one or two months to finish the due diligence.

He said on Thursday that Holderbank had a 12.5 percent stake in Semen Cibinong and PT Tirtamas Majutama, which is owned by tycoon Hashim Djojohadikusumo, who holds 41.45 percent in shares.

"Holderbank may increase its share in Cibinong to more than 50 percent or less than 50 percent, depending on the results of the due diligence," he added.

Semen Cibinong president Hashim Djojohadikusumo said the deal reflected foreign investors' confidence in the future of Semen Cibinong and Indonesia.

Hashim also said the deal was in line with the government's policy that welcomes increased participation of foreign investors in the country's industries.

"The investment and acquisition proposal will be presented to Semen Cibinong's creditors shortly," Hashim said.