Rajawali signing of Gresik deal draws closer, Indonesia

Rajawali signing of Gresik deal draws closer, Indonesia
Published: 11 July 2006

Indonesia’s government hopes to sign an agreement with the Rajawali group later this week to allow the Indonesian conglomerate to buy Cemex SA de CV’s stake in state-controlled cement maker PT Semen Gresik, a minister said. 
 
"The draft of the agreement is expected to be finished later today so that the agreement can be signed in the coming days," Minister of State Enterprises’ Affairs Sugiharto told reporters, without providing details of the timetable. 
 
The agreement will state that the government won’t give Rajawali privileges similar to those granted to Mexico’s Cemex, Sugiharto said. 
 
Unlike Cemex, Rajawali won’t have the right of "first refusal" to buy part of the government’s Gresik stake and Rajawali won’t have the right to refuse the buyer. 
 
A Cemex official in Indonesia said separately that the Mexican cement giant expects to sign a closing agreement for the sale of its 24.9% Gresik stake to Rajawali Friday. 
 
Rajawali had set Monday as the deadline to close the $337m deal, pending an approval from the government, which owns 50.01% of the listed local cement producer.