Government to buy-back Gresik

Government to buy-back Gresik
Published: 06 April 2006

Indonesian government will use the preemptive rights to buyback 25.53 per cent shares of PT Semen Gresik, Cemex Asia Holdings plan to sell.  The Minister of SOE Sugiharto said the government, controlling 51% shares of the cement company, is consider the legal aspect of executing the preemptive right.  "We have the preemptive right to bid the share before Cemex offers it to other buyers," he said yesterday. 
 
The minister said the government, supported by its lawyers, is reviewing the term and conditions of the conditional sales and purchase agreement of Semen Gresik on whether it is fair enough.  When asked about the funding, he said it would not be difficult for the government to get some fund as Semen Gresik is profitable. "Many parties have offered some loans."  
 
 But he declined to explain further to prevent from breaking the Capital Market Law. "Such statement could influence the decision of shareholders. I don’t want to break Capital Market Law."  Rajawali Group and Lafarge have reportedly sent letters to the ministry of SOE that they would like to buy Semen Gresik.