Hashim Take Over Tuban Petro

Hashim S. Djojohadikusumo has agreed makes a bid to pay its IDR3.2 trillion in debts to get 45% stakes of PT Tuban Petrochemical Industries (Tuban Petro) from 70% shares of the government through the State Asset Management Corporation.

In the transaction takes place, the government will still own 25% shares at Tuban Petro. The rest shares will belong to Sila Kencana Lestari Group (30%) and Hashim (45%).

An executive involving in the transaction said the finalization of the documents is going on.

"If the Finance Minister agrees the transaction, the government's shares will decline from 70% to 25, and the rest will be taken over by Hashim," he said last month.

Hashim is the son of economist Prof. Soemitro Djojohadikusumo. He was known as one of Indonesia's conglomerate with various businesses. Through PT Prima Comexindo Trading, Hashim has expanded his business to Russia, Kazakhstan, Azerbaijan, and Africa since 90s.
Last year, through Nations Energy Co, Calgary based oil and gas company, Hashim sold his oil blocks as well as the mining facilities in Kazakhstan to CITIC Group of China at the price of US$1.91 billion.

The Corporate Secretary of PPA Renny O. Rorong said that the company has been reviewing the plan.

PPA owns some assets of Tuban Petro in multi-years bond of IDR3.266 trillion and mandatory convertible bond (MCB) of IDR4.167 trillion following the debt restructuring of Tirtamas Majutama.

The MCB represents the ownership of 21%-25% at PT Trans Pacific Petrochemical Indotama (TPPI). Tuban Petro owns 59.5% shares at TPPI and 80% shares at PT Polytama Propindo.
Apart from PPA, the other shareholders are Itochu Corporation (4.25%), Tuban Petrochemicals Pte Ltd (the unit of Siam Cement PCL 17%), Sojitz Corporation (4.25%) and Pertamina (15%).
TPPI produce aromatics products like paraxylene, benzene, toluene, orthoxylene at the volume of 1,065,000 tons per annum.

Another source said that Pertamina may buy the rest 25% shares of Tuban Petro from PPA.
"Based on the restructuring agreement of Tirtamas, Pertamina has the rest shares of 15% at TPPI, and it has the option to have the ownership to 25% at Tuban Petro through the scheme of rights to match.