PT Semen Indonesia Tbk completed the acquisition of 80.64% stake in PT Holcim Indonesia Tbk from LafargeHolcim Ltd for IDR 13 trillion.
January 30, 2019
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PT Semen Indonesia (Persero) Tbk (IDX:SMGR) signed an agreement to acquire 80.6% stake in PT Holcim Indonesia Tbk (IDX:SMCB) from LafargeHolcim Ltd (SWX:LHN) for IDR 13 trillion on November 12, 2018. Under the terms of the transaction, PT Semen Indonesia (Persero) Tbk agreed to acquire 6.18 billion shares of PT Holcim Indonesia Tbk for IDR 2097 per share. The assets to be sold to Semen Indonesia include the entirety of LafargeHolcim's operations in Indonesia, which consists of 4 cement plants, 33 ready-mix plants and 2 aggregate quarries. Closing of the transaction is subject to customary regulatory approvals. The proceeds from this transaction will significantly improve debt ratios of LafargeHolcim with the target of 2 times of net debt to recurring EBITDA to be achieved by the end of 2019 and to pay debts of LafargeHolcim Ltd. Citi acted as financial advisor to LafargeHolcim Ltd (SWX:LHN). Gerrit Jan Kleute and Iqbal Darmawan of HHP Law Firm, Andrew Martin of Baker & McKenzie.Wong & Leow, Timothy Gee of Baker & Mckenzie LLP, London acted as legal advisors to LafargeHolcim. Latham and Watkins and Tjajo & Partners acted as legal advisors to PT Semen Indonesia. BNP Paribas Capital Corporation Inc acted as a financial advisor to PT Semen Indonesia. HSBC Securities Indonesia. PT acted as broker to LafargeHolcim Ltd and PT. BNI Securities acted as broker to PT Semen Indonesia (Persero) Tbk.
PT Semen Indonesia (Persero) Tbk (IDX:SMGR) completed the acquisition of 80.64% stake in PT Holcim Indonesia Tbk (IDX:SMCB) from LafargeHolcim Ltd (SWX:LHN) for IDR 13 trillion on January 31, 2019.
PT Semen Indonesia (Persero) Tbk is an Indonesia-based multinational building materials solutions company. The Company provides a range of product and service variants according to the level of development needs from simple renovations, property development projects, public facilities, infrastructure to other large-scale projects. The Company has two segments: cement production and non-cement production. Cement production segment produces and markets cement products in Indonesia, Vietnam, as well as various export destination countries. In addition to production facilities, the Company has also developed various supporting facilities, such as packaging factories, ports, and other distribution support networks spread across all provinces in Indonesia and parts of Vietnam. Non-cement production segment consists of mining limestone and clay, manufacturing packaging bags, developing industrial estates, finished and ready-to-use concrete, information system services, logistics and trading.