JP Morgan to help finance Gresik acquisition

JP Morgan to help finance Gresik acquisition
Published: 25 July 2006

JP Morgan has agreed to provide a loan to the Rajawali Group to help finance its acquisition of 24.9 per cent stake of Cemex in state cement maker PT Semen Gresik, a report said. Cemex has agreed to sell the stake at a price of US$337m and the government, which still holds the majority 51 per cent of the cement factory, has in principle approved the deal after long negotiations .
 
The loan fund from JP Morgan, however, is only a small part of the fund needed for the acquisition, the newspaper Bisnis Indonesia said quoting company sources.  Rajawali provides most of the fund, the sources said.