Diversified business group Rajawali failed Monday to wrap up its purchase of most of Mexican-based cement giant Cemex SA’s stake in state-owned cement maker PT Semen Gresik (SG).
The delay was due to the fact that the government had yet to conclude its negotiations with Cemex over a number of requirements that had to be satisfied before the former would be willing to give its approval to the sale, Rajawali managing director Daryoto Setiawan said.
"Cemex has given the government until July 10 to finish the negotiations and for us to complete the transaction. Among the issues that have yet to be settled are the termination of the arbitration process," he said.
Based on the initial deal between the two firms, the share sale should have been completed by July 3.
After a protracted dispute, the state minister for enterprises has agreed to the decision by Cemex to sell a 24.9 per cent stake – it currently owns a 25.5 percent stake – in SG to Rajawali for US$337m as part of Cemex’s exit strategy to end a five-year dispute with the government.