As the second largest shareholder in PT Semen Cibinong Tbk (Cibinong), "Holderbank" currently holds a 12.5 percent minority interest in one of Indonesia's principal cement producers. Now, "Holderbank" has reached agreement with Cibinong's major shareholder to increase its investment in Cibinong with a view to acquiring a controlling interest in the company. The agreement is subject to the satisfaction of certain conditions, including the restructuring of Cibinong's debt. "Holderbank" has agreed to participate in those negotiations.
A key cement producer in the Indonesian market, Cibinong is listed on the Jakarta Stock Exchange. The company operates two modern cement facilities, one at Naragong near Jakarta in West Java and the other at Cilacap on the south coast of Central Java. Together, the plants have a total annual cement capacity of some 10 million tonnes. Cibinong is market leader in Central Java and the second largest cement supplier in the Greater Jakarta region. Significant volumes are also shipped to East Java where Cibinong also has raw material concessions for a future plant. In the last two years Cibinong also developed important export markets with sales of cement and clinker in the Indian Ocean area and to North America. Total sales exceeded 5 million tonnes in 1999. The company also has ready-mix concrete and aggregate operations in several urban centres in Indonesia.
Negotiations with representatives of Cibinong's main creditors concerning restructuring of the USD 1.2 billion principal debt will commence shortly. Once a restructuring agreement is reached with creditors, a proposal including details of "Holderbank's" investment will be submitted to shareholders for approval. A condition to the restructuring will be the receipt of all necessary government approvals and compliance with applicable laws.
With majority and minority interests in 70 countries on all continents, "Holderbank" is one of the world's leading suppliers of cement, as well as aggregates (gravel and sand), concrete and construction-related services.