Govt may agree to Cemex share sale

Govt may agree to Cemex share sale
Published: 29 June 2006

The government may agree to the plan by Mexican-based cement giant Cemex SA to sell part of its stake in local cement maker PT Semen Gresik (SG) to the Rajawali Group.   "Basically, there is no problem with Rajawali," State Minister for State Enterprises Sugiharto said Wednesday.  He added that during a hearing last night, the House of Representatives had urged the government not to pass up on the opportunity presented by Cemex’s plan to sell some of its shares in SG, subject to three conditions.  
 
"First, they have to withdraw the ongoing arbitration proceedings; second, the Conditional Sale and Purchase Agreement (CSPA) has to be annulled; and third, all the deals relating to the CSPA have to be canceled," said Sugiharto, referring to the CSPA between the government of Indonesia and Cemex, which was signed in 1998 when the latter first bought a stake in SG from the state.  
 
He added that the government would still need one or two more days to negotiate with the relevant parties, including Rajawali as regards its demand for the written approval of the government.  (Jakarta Post).