Cement maker PT Holcim Indonesia said in a prospectus Wednesday that it plans to buy all of Malaysia’s Holcim Sdn. Bhd., or HSB, from Holderfin BV for $50 million.
Holcim Indonesia said that it will seek shareholder approval on May 18 for the acquisition plan.
The acquisition is aimed at ensuring the continuity of Holcim Indonesia’s annual 500,000t of clinker exports to HSB and to cope with the stiffer competition in the region, the company said.
Holcim Indonesia, which is 77.33%-owned by Holderfin BV, said that it plans to seek loans from Indonesian banks to finance up to 85% of the total transaction.