Rajawali sells stake in Gresik in US$1bn deal

Rajawali sells stake in Gresik in US$1bn deal
Published: 01 April 2010

Indonesia’s Rajawali Corp sold a 23.66% stake in PT Semen Gresik, the country’s largest cement maker by assets and volume, in a US$1.08bn deal that is one of Indonesia’s biggest equity transactions in almost two years, the Wall Street Journal reports.

Rajawali Managing Director Darjoto Setyawan said Wednesday that the group raised IDR9.8trn (US$1.08bn) by selling the stake at IDR7000/share to a number of institutional investors.

The sale is the largest equity transaction in Indonesia since June 2008, when coal miner PT Adaro Energy raised US$1.3bn in an initial public offering, according to data provider Dealogic.

Mr. Setyawan said Rajawali – an investment company owned by one of Indonesia’s wealthiest businessmen, Peter Sondakh – will use the net proceeds from the sale to develop its businesses in plantations, mining, tourism and property.

Rajawali bought a 24.9% stake in Gresik from Cemex in July 2006 for US$336.7m.

Following the sale, Rajawali has been left with 1.25% of Gresik, the Indonesian government with 51%, and public shareholders with the rest. Mr. Setyawan said Rajawali has offered to sell its remaining 1.25% stake to the government.

"We have given the government one month to consider the purchase of our remaining stake in Gresik," said Rajawali’s Setyawan, adding that if the government doesn’t take the offer, Rajawali might sell the stake to investors.