The restructuring consultant of Indonesian Semen Gresik has recommended the company to focus in bolstering the existing three brand names as well as taking geographical approach rather than developing holding company.
The Vice President Director of PT Semen Gresik Tbk Rudiantara said that the study on the corporate restructuring, including the possible establishment of holding company, has done.
"The study on restructuring plan has been concluded. We will bring the recommendation to the EGM on June 28 2007. It is the shareholders who will take the decision on the most feasible option," he told Bisnis Indonesia last week.
There has been an issue on the establishment of holding company since long time ago. In October 2006 Rajawali Group, the owner of 24.9% shares of Semen Gresik, has said that it would support the effort of West Sumatra people to place Semen Padang at the same position with Semen Gresik and Semen Tonasa.
The group also has support the idea to establish PT Semen Indonesia, the holding company for the three cement units. In this regard, the company has assigned consultant on the restructuring plan.
AT Kearney was assigned to restructure the corporate and JP Morgan was assigned to restructure the capital. "We see that the establishment of holding-company us not urgent. We will focus on optimizing the existing strength," Rudiantara said.
He said that the brand name of Semen Padang is strong in Sumatra, and so do with Semen Gresik and Semen Tonasa.
"The people of Padang are proud of buying Semen Padang than the other. The same case happens in East Java. That is what we want to do in geographical approach."