HeidelbergCement may sell up to 14 per cent of its majority stake in Indonesian unit PT Indocement Tunggal Prakarsa to reduce its debt, sources familiar with the deal said.
HeidelbergCement, which has a 65 per cent stake in Indocement, is laden with debt from the takeover of British rival Hanson but might still want to retain 51 per cent control over Indonesia’s second biggest cement maker, said the sources, who declined to be identified because a deal was not public.
A source who has been advising potential buyers on the stake sale said HeidelbergCement would only sell a maximum of a 14 per cent stake in Indocement, which would be worth around US$270m based on its current market capitalisation.
The Salim group looks like a possibly buyer with the company reportedly wants to increase its stake in Indocement. CEO Anthoni Salim said the group, which already has 13.03 per cent stake in Indocement hopes Heidelberg agrees to sell more than just 15 per cent stake.