Cemex to close stake sale in Gresik, Indonesia

Cemex to close stake sale in Gresik, Indonesia
Published: 05 June 2006

Cemex plans to complete its sale of a 24.9 per cent stake in state-run cement firm PT Semen Gresik to the Rajawali Group by June 23 or a week after that at the latest, Bisnis Indonesia reported, quoting a source close to the transaction. Cemex is pushing ahead with the sale and ’is not responding’ to the Indonesian government’s proposal to buy back the Semen Gresik stake, the source said.

Earlier, State Minister for State Enterprises Sugiharto said the government has the right to buy back the shares should Cemex decide to sell its stake. Indonesia proposed a buyback through a consortium of state enterprises over a two-month period but Cemex turned down the proposal, officials have said.

Sugiharto sent Cemex a second letter on May 25, hoping the company would not turn down his proposal without first discussing it, Bisnis Indonesia said. Over the weekend Cemex responded with another rejection, the source said.