Cemex urged to review its rejection

Cemex urged to review its rejection
30 May 2006

Even though Cemex Asia Holdings Ltd has rejected all options offered by Indonesian government, the Minister of State Owned Enterprises urged the company to evaluate the rejection.  The minister said that in a letter to Cemex on May 25 in respond to the rejection of Cemex.  On the earlier day, in fact, the minister has sent a letter to Cemex in respond to the rejection of the Mexican cement company. 
 The May-24 letter the government urged Cemex not to continue the plan to sell 24.9 per cent shares of Cement Gresik without prior discussion with Indonesian government. The government also regretted that Cemex has continued the divestment plan on Semen Gresik without considering the right of first refusal of Indonesian government. 
On the May 20 letter, Sugiharto said that the government revoked the earlier day letter.  On the other hand, the Ministry of SOE also hoped to be able to renegotiate with Cemex on the right of first refusal so that Cemex will be from any risk in selling the stake to the third party.  The letter said that in the legal perspective, the selling of the stake to the third party is against the law. 
By keep referring to the conditional sale and purchase agreement (CSPA) Cemex should understand that the agreement was not based on Indonesian law so that the selling of the SOE’s stake would depend on the other related law.  Sugiharto said that the government, through the Ministry of SOE, has the final authority on whom Cemex will be able to sell the Semen Gresik’s stakes to. 

Roes Aryawijaya, a deputy of SOE Ministry, said that the ministry is waiting for the respond of Cemex. "I don’t know on whether Cemex has responded [to our letter]. But there will be no deadlock in the negotiation. Nobody says that the refusal right is expired," he said. He said that the government may prepare other option due to the rejection of Cemex. "If we want to buy and if we offer such scheme, surely we are waiting for the respond from the company. If Cemex responds that it has rejected the offer we will ask on which point," he said. (Bisnis) 
Published under Cement News