The Holcim cement company announced on Monday that it had acquired a majority stake in the Cibinong company of Indonesia.This content was published on November 5, 2001 - 15:33
The deal means that Holcim (formerly Holderbank) increases its 12.5 per cent stake in Indonesia's third-largest cement producer to about 75 per cent.
A statement said this latest investment consolidated Holcim's leading position in the cement sector in the Association of South-East Asian Nations (ASEAN) countries.
The deal was announced after negotiations with Cibinong's principal creditors to restructure a total of $1.2 billion (SFr1.97 billion) debt.
Holcim said fellow shareholders in the venture included major creditors and other minority shareholders.
The restructured company will have equity of around $500 million and debt of around $300 million. Holcim is investing about $90 for every tonne of annual cement capacity.
The statement said that now its debt had been restructured, Cibinong was well placed to fully benefit from an economic recovery in Indonesia.
Construction activity in Indonesia collapsed as a result of the 1997/1998 Asia crisis, with demand for cement falling by more than 30 per cent. Since then, the construction sector has begun to recover.
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