Swiss firm to control PT Semen Cibinong

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.