Semen Gresik to set up new holding company

The establishment of the holding state cement enterprise that will unite PT Semen Gresik, PT Semen Padang, and PT Semen Tonasa may be facilitated by IDR500 billion in taxes since the establishment process could be made through the transfer of Semen Gresik’s assets.

The holding cement company, possibly to be called PT Semen Indonesia Tbk, is going to be created by transferring all assets of Semen Gresik to the new company. "The transfer of the assets can create tax obligations worth around IDR500 billion," said Bisnis source yesterday.

However, the establishment scheme, which will be included in the corporate restructuring of Semen Gresik, is being drafted AT Kearney, while the capital restructuring is handled by JP Morgan. AT Kearney is still reviewing available options to avoid taxes.

The establishment of the holding state cement enterprise will become one of the agenda of the Shareholders General Meeting scheduled to take place two months later. Deputy President Commissioner of Semen Gresik Darjoto Setyawan revealed the establishment of the holding cement company was still being reviewed. "The company soon will hold the board of directors meeting to discuss the issue."

Deutsche Bank AG in its research on March 2, as quoted by Bloomberg, boosted the estimated net profit per share and share price of Semen Gresik since demands for construction materials were soaring.