East Timor plant revamp possible - revised

East Timor plant revamp possible - revised
Published: 21 May 2008

British based financing company, Delamore and Owl & Group said it is ready to provide US$28 million in credit to revitalize a small debt ridden cement maker in Indonesia. Delamore also wants to acquire a 61 per cent stake in the government owned PT Semen Kupang in Timor, East Nusatenggara, chairman of Delamore Indonesia Victorino Dosantos said.

Dosantos told the newspaper Investor Daily, Delamore has already signed an agreement on the credit with Semen Kupang. He said Delamore has sent a letter to the government about its plan to acquire the cement factory, adding it is waiting for an answer.

Earlier it was reported that Bank Mandiri, which owns a majority stake in the factory  was negotiating the sales of the stake to Nava Bharat of India.

Bank Mandiri became a shareholder taking over its stake and assuming a debt of US$50m. Nava Bharat has tentitively agreed to take over the debt and help the cement factory resume operation, Marshal Godlief Lay, Semen Kupang general director said. Semen Kupang has reportedly stopped operation since last month over an arrear of Rp25 billion debt in power supply to PT Sewatama Jakarta.