Jakarta (ANTARA News) - State-owned cement company PT Semen Indonesia Tbk announced it has signed a Conditional Sales and Purchase Agreement to take over 6,179,612,820 shares or equivalent to 80.6 percent of PT Holcim Indonesias share ownership.
The US$917 million deal took place on Monday, and the process of transaction would be concluded through PT Semen Indonesia Industri Bangunan (SIIB), a subsidiary of Semen Indonesia.
"We are happy to announce the transaction that Semen Indonesia Group would strengthen its position as the market leader in Indonesia," Chief Executive of Semen Indonesia Hendi Prio Santoso said here on Tuesday.
Under the more competitive in cement industry in the country, the combination of Semen Indonesia and Holcim Indonesia would enlarge and strengthen the foot print of the holding company of state-owned cement producers.
Holcim Indonesia is the third largest cement producer in Indonesia, having four factories with a total production capacity of 14.8 million tons a year and 30 ready mix facilities.
The take over of Holcim Indonesia will strengthen the position of Semen Indonesia Group on the domestic market.
Semen Indonesia would be able to expand its networks of cement factories, diversify products, improve efficiency in distribution, and strengthen position in ready mix business.
The business prospect in cement industry in Indonesia is still encouraging with the fast growing demand for cement in the country to follow the growing property sector and infrastructure projects.
Currently Indonesia has 15 cement producing companies with installed production capacity of 107 million tons per year. Private companies including foreign companies account for 63 percent of the capacity.
The acquisition made Semen Indonesia Group the largest cement company in Southeast Asia with a total capacity of 53 million tons a year.
PT Holcim Indonesia Tbk is a public listed company, which started operation in the country by acquiring PT Semen Cibinong Tbk in December 2001.
Source: ANTARA News