Semen Indonesia Ready to Complete the Acquisition of Bangladesh Cement Company

By : Arya Mandala And Aldi Firhand. A | Sunday, October 08 2017 - 15:04 IWST

PT Semen Indonesia Tbk (SMGR) (indonesianindustry)
PT Semen Indonesia Tbk (SMGR) (indonesianindustry)

INDUSTRY.co.id - Jakarta, The process of negotiation of Semen Indonesia to acquire cement making and cement mills in Bangladesh enters the final phase. The Company expects the four-year corporate action to be completed this year.

New developments related to the acquisition plan that has been sticking since 2013 was disclosed Marketing and Supply Chain Ahyanizzaman Director after the Extraordinary General Shareholders Meeting (RUPSLB) PT Semen Indonesia (Persero) Tbk in Jakarta, some time ago. According to him, the delay of Indonesia Cement expansion in Bangladesh is not caused by regulation constraints but purely related to negotiation with the company to be acquired.

"We are trying to finish the finishing, just finalize it, hopefully this year can be, depending on negotiations," he said. After the completion of the acquisition process, the issuer with the SMGR trading code on the stock exchange floor will become the majority shareholder of the cement company in Bangladesh. However, Ahyanizzaman reluctant to mention the amount.

The presence of cement production from a Bangladeshi factory later, said Ahyanizzaman will be allocated to meet the needs of the Bangladeshi market.

In addition to completing the acquisition of a Bangladeshi factory, Semen Indonesia will also expand in the country. The plan, Semen Indonesia will be the shareholder of two private companies engaged in the building materials sector. The corporate action, also targeted for completion this year. "Maybe not this year, for cement, but for building materials it could be this year," he said.

Until the end of the year, the company allocates capital expenditure (capex) of Rp 6 trillion to Rp 7 trillion. So far, the company has used two-thirds of the capex funds.

Approximately 50% of the absorbed capex is used for the construction of factories in Rembang, Central Java and Indarung VI in Padang, West Sumatra. The capex funds will also be used for inorganic expansion purposes. However, Ahyanizzaman did not mention the amount of funds needed for the expansion.

The related RUPSLB decisions held SI is nothing but changes in the composition of the company's board. As is known, the position of the Managing Director of SI suffered a vacancy after the death of Rizkan Chandra who died on July 15, 2017. In EGM the shareholders agreed to appoint Hendi Prio Santoso to become the new President Director of SMGR. Hendi himself previously known as the President Director of PT Perusahaan Gas Negara.

In addition to approving the change of the company's board of directors, the meeting also approved the amendment of the company's articles of association related to the determination of the shares of the A Dwiwarna Series of the Republic of Indonesia and the Standardization of the BUMN's Open Budget, and the Ratification of the Minister of State-Owned Enterprises Regulation that must be confirmed by the Open State-Owned Enterprises.

News Comment

Today's Industry

Pekerja memeriksa tower komunikasi milik XL Axiata. (Rizki Meirino/INDUSTRY.co.id)

Rabu, 20 Juni 2018 - 18:00 WIB

Lebaran 2018, Traffic Usage of XL Axiata Natural Data Service Reaches 95%

Jakarta - PT XL Axiata Tbk (EXCL) traffic usage during Lebaran holiday June 8-17, 2018 increased by about 30% compared to normal days and experienced a significant 95% increase compared to last…

Ilustrasi Bandara

Rabu, 20 Juni 2018 - 17:30 WIB

Extra Aviation Syamsudin Noor Airport South Kalimantan Reaches 51 Aircraft

Banjarbaru - The number of extra flights provided by Syamsudin Noor Banjarmasin, South Kalimantan, to H + 2 or Monday (18/6) of 51 airlines from several airlines.

Pekembangan Emas

Rabu, 20 Juni 2018 - 17:00 WIB

Gold Price Down Dictated Dollar Appreciation

Jakarta - Gold mired despite the increasingly tense trading situation has raised vigilance in financial markets and among investors.

OPEC (Foto Ist)

Rabu, 20 Juni 2018 - 16:30 WIB

Market Awaits OPEC Decision

Jakarta - Market interest in oil is dwindling as expectations that OPEC and Russia will ease production restrictions to offset declining Venezuelan production and production disruptions in Iran.

Illustration of automotive exhibition in Jakarta. (Agoes Rudianto / Anadolu Agency / Getty Images)

Selasa, 19 Juni 2018 - 20:10 WIB

Take a look at the latest Automotive Exhibition at the Jakarta Fair

No doubt, Jakarta Fair Kemayoran has been transformed along with its big name as the longest and largest exhibition in Southeast Asia. This, not infrequently make the booth participants also…