Jakarta rejects Semen Gresik plan to issue convertible bond

Jakarta rejects Semen Gresik plan to issue convertible bond
Published: 27 November 2007

The government refuses to approve plan by state-owned cement maker  PT Semen Gresik to issue convertible bond (CB) to finance the construction of new cement factories.  
 
State Minister for State Enterprises Sofyan Djalil said he feared that plan to issue CB is part of attempts to have the government share in the country’s largest cement maker diluted.  
  
The government still has controlling 51 per cent stake in  Semen Gresik with private investors including the Rajawali Group and investing public taking the remaining 49 per cent.