Taiheiyo signs capital investment agreement in Solusi Bangun Indonesia

Taiheiyo signs capital investment agreement in Solusi Bangun Indonesia
27 January 2021

PT Solusi Bangun Indonesia Tbk (SMCB), PT Semen Indonesia Industri Bangunan and Japan-based Taiheiyo Cement Corp signed a capital transfer and inclusion agreement and cement sale and purchase master agreement (offtake agreement) on 26 January.

The transfer and capital participation agreement reflects the planned capital investment by Taiheiyo in the former Holcim subsidiary through the issuance of new shares with the right to pre-order securities (HMETD) or rights issue.

"The implementation of SSA [Signing of Assignment and Subscription Agreement] and issuance of new shares with HMETD will be implemented in accordance with the applicable laws and regulations," said Aulia Mulki Oemar, president Director of Bangun Solutions.

Along with the Taiheiyo investment plan, the company also signed an offtake agreement with the Japanese cement producer to increase cement plant utilisation.

"With the signing of the SSA and the Offtake Agreement, it is expected to strengthen the capital structure and position of the Company in carrying out its business activities," Mr Oemar said.

Currently, 7.5bn shares or 98.307 per cent of SMCB are held by Semen Indonesia via PT Semen Indonesia Industri Bangunan. The remaining 129.75m or 1.69 per cent shares are owned by public investors, or have not met the minimum public stock requirements (free float).

Semen Indonesia’s Secretary, Vita Mahreyni, said the company together with SBI and TCC signed a partnership agreement on 8 December 2020.

"This [agreement] is a realisation of the initial agreement to conduct strategic cooperation between the parties through a partnership agreement with TCC," Mr Vita wrote.

News of Taiheiyo's entry to SMCB started on 21 April 2020. At that time, SMCB had received positive sentiment after Japanese investor Taiheiyo planned to inject US$220m in capital into SMCB, reported CNBC Indonesia.

The Japanese company will own at least 15 per cent of the shares in SBI after the transaction.

Published under Cement News