Danareksa Group likely to gain Semen Gresik stake

Danareksa Group likely to gain Semen Gresik stake
Published: 14 April 2010

The Danareksa group has emerged as the preferred buyer of a 1.25 per cent stake in Indonesian state-controlled cement company PT Semen Gresik, according to State Enterprises Minister Mustafa Abubakar.

Mustafa said state-owned Danareksa was ready and able to purchase the Semen Gresik stake, which is being offered by investment firm PT Rajawali, but added that the plan had yet to be approved by Finance Minister Sri Mulyani Indrawati.

Marciano Herman, a director at PT Danareksa Sekuritas, Danareksa’s securities company, on Monday confirmed the group’s interest in Semen Gresik to reporters at the Jakarta Globe.

“We are ready to acquire the Semen Gresik shares. We’re now waiting for direction from the minister.
Investment firm Rajawali, controlled by tycoon Peter Sondakh, in March 2010 sold a 23.7 per cent stake in Semen Gresik, the country’s largest cement maker, to private investors for US$1.08bn, and offered its remaining 1.25 per cent stake to the government, which owns 51 per cent of Semen Gresik, the country’s largest cement producer.

Mustafa then said then that the government would decline the offer, but would present it to state enterprises, including Danareksa and others.

Rajawali bought a 24.9 per cent stake in Semen Gresik from Cemex in July 2006 for US$336.7m. It said it planned to use proceeds from the sale to investment in sugar plantations and mining.

PPA was established in February in 2004 by the government and assigned to manage bad assets from the now-defunct Indonesian Bank Restructuring Agency (IBRA).



Rajawali managing director Darjoto Setyawan said his company sent a formal offer to the government on April 1 and had not received a response.

“We offered at a price of IDR7,000 per share and now Semen Gresik’s shares have been trading above Rp 8000,” he said, adding that the offered price should be attractive to the government. Semen Gresik shares closed at IDR8100 on Monday.