Cemex expected to reject Indonesian minister’s move

Cemex expected to reject Indonesian minister’s move
Published: 19 May 2006

Cemex Asia Holdings Ltd, which wants to sell its 24.9 per cent stake in state cement maker PT Semen Gresik, is expected to reject a move by Minister for State Enterprises Sugiharto, who is seeking to form a consortium of state companies to buy the stake.  The Mexican cement giant already agreed to sell the stake at a price of US$337 million to the Rajawali Group, but Sugiharto was reported against a deal between Cemex and the Indonesian private conglomerate.
 
Under its contract Cemex has to make first offer to the government as the majority shareholder of Semen Gresik but the government may not transfer its first right of refusal to other parties.  Sugiharto’s move might also face disapproval from the House of Representatives with a number of legislator already criticizing him for seeking to block a deal between Cemex and Rajawali. 
 
Chairman of the Commission XI Awal Kusumah said Sugiharto has to consult with the parliament before making any decision to use funds of state companies to buy the stake.  Other legislators warned him against creating financial problem for state companies forced to raise cash to buy the stake.