Nusantara seeks funds to acquire cement company

Nusantara seeks funds to acquire cement company
Published: 01 October 2007

PT Nusantara Infrastructure Tbk is seeking IDR600 billion - IDR700 billion
loans in Singapore and Hong Kong to acquire cement manufacturing company.
Nusantara Infrastructure’s President Director M. Ramdani said the company
needs IDR1.8 trillion to acquire cement-company this year.

"The cement company is negotiating with the creditor as after the
acquisition Nusantara will take over all assets and liabilities of the
company," he told Bisnis Indonesia over the weekend.

Nusantara, he said, is approaching local and foreign banks to get some loans
to ease the company to expand the business. To finance the acquisition the
company has planned to issue IDR250 billion of medium term notes. The rest
will be from banking loan.

Ramdani said the company will focus on infrastructure including to develop
toll road in Eastern Indonesia and to acquire cement-company. "I cannot tell
you the company’s name to acquire as the negotiation is in progress. There
are still some technical problems to solve."

Nusantara Infrastructure has predicted to book IDR200 billion revenues this
year on the better performance during the first half of 2007. The first half
net profit has jumped by 288% from IDR2.3 billion to IDR11.4 billion, thank
to the higher revenue from toll roads. "Our revenue has reached IDR116
billion, an increase of 200% from IDR38.7
billion in 2006."

On September 26-27 the stock price jumped by IDR60 from IDR270 to IDR330.
The shareholders of Nusantara Infrastructure as of August 31 were PT Bosowa
Trading Internasional (50.52%), PT Bosowa Utama (6.15%), Mensa Capital Pte
Ltd (19.75%), Pledge Bosowa Trading International (10.12%), and the public.