HeidelbergCement has raised about US$310m after cutting its stake in Indonesia’s PT Indocement Tunggal Prakarsa to around 51 per cent to reduce debt, two sources with knowledge of the deal told Reuters.
HeidelbergCement sold 520.5 million shares at 6,000 rupiah a share to institutional investors, the sources said, a discount of 12 percent from Tuesday’s closing price of 6,850 rupiah a share.
Shares of Indocement opened 2.2 percent lower in Jakarta following news of the stake sale, which cut HeidelbergCement’s stake from around 65 percent, but were up 4.4 percent by 0544 GMT.
The sale removed the overhang on Indocement’s shares, analysts said, adding they were bullish on the company’s earnings potential and valuation compared with rivals such as Semen Gresik and Holcim Indonesia.
"We like Indocement since it is a major player in Java, which we see as a major beneficiary from the government infrastructure projects. It also has a clean balance sheet," said Citigroup analyst Ella Nusantoro, who has a buy rating on the stock.