Sila Kencana Group Interested in Acquiring Tuban Petro

Sila Kencana Lestari Group expresses its interest in taking over PT Tuban Petrochemical Industries (Tuban Petro) by acquiring a 45% stake of the government-controlled (PPA-controlled) 70% stake in the company.
The acquisition is taken after Hashim S. Djojohadikusumo cancels its plan to acquire the 45% stake.
President Director of the Assets Management Company (PPA) Mohammad Syahrial revealed the measure was taken to service IDR3.2 trillion in debts to the government.
"We have reviewed the plan and PPA has recommended to the government to approve the plan. The transaction can only be realized if approved by the Minister of Finance," he explained me, recently.
He informed PPA would still control a 25% stake in Tuban Petro. "The next option for Tuban Petro will be decided by the government. However, judging from the good market condition, the stake should still be in the hands of the government. Nevertheless, if the government wants us to divest the stake, we will be ready."
PPA has appointed PT Heburinas Nusantara as a consultant to appraise Tuban Petro. The appraisal is expected to be completed in the middle of March this year.
If the acquisition by Sila Kencana Group is realized, the government still has a 25% stake in Tuban Petro, while Sila Kencana Lestari Group, with its additional 45% stake, will seize a 75% stake.
Tuban Petro controls a 59.5% stake in TPPI and a 80% stake in PT Polytama Propindo. The shareholders o Tuban Petro outside of PPA are Itochu Corporation (4.25%), Tuban Petrochemicals Pte Ltd (a subsidiary of Siam Cement PCL, 17%), Sojitz Corporation (4.25%) and the State Oil Company/Pertamina (15%).
Tuban Petro's credit and stock assets that PPA currently has are Multi Years Bond worth IDR3.266 trillion and Mandatory Convertible Bond (MCB) worth IDR4.167 trillion, which are obtained following the restructuring of Tirtamas Majutama Group in IBRA (BPPN).
The MCB represents a 21%-25% stake in PT Trans Pacific Petrochemical Indotama (TPPI). TPPI produces 1,065,000 tons of aromatic products like paraxylene, benzene, toluene, orthoxylene, per year. In addition, TPPI produces 1,624,000 tons of fuel and1.065 million tons of light naphtha annually.
Previously, in the middle of March, Hashim S. Djojohadikusumo was touted to have cancelled his plan to acquire a 45% stake in Tuban Petro of the government-controlled 70% stake.