The government of East Nusa Tenggara (NTT) will take over the stake of Bank Mandiri at PT Semen Kupang by injecting IDR50bn to the cement processing company.
The negotiation between NTT Government and Bank Mandiri is going on to make sure the technical issue of the acquisition and the percentage of the shares the provincial government will take over.
The Secretary of the Ministry of State Owned Enterprises (MSOE) M. Said Didu said that Semen Kupang has asked for the working capital injection as much as IDR50bn.
"The government of NTT will meet the requirement by taking over the stake of Bank Mandiri at the company. The bank own the cement company as the bad debt of the company has been converted into stocks," he said.
The Corporate Secretary of Bank Mandiri Ekoputro Adijayanto confirmed that Bank Mandiri owns some stake at Semen Kupang.
"We have some stocks following the debt to equity swap program. But the ownership will be temporary as the ownership is merely our way to restructure the company’s debt," he said last week.
He declined to comment on the negotiation between the bank and NTT government on the acquisition plan. "The point is that we are negotiating with investor to sell our stake at Semen Kupang."
He said that the outstanding debt of Semen Kupang to Bank Mandiri was IDR158 billion. "Bank Mandiri has an interest so that the cement company will run well. The supply of raw material to Semen Kupang is necessary to maintain the survival of the company."