The Assets Management Company (PPA) confirms Honggo Wendratno-owned Sila Kencana group will acquire a 50% stake in PT Tuban Petrochemical Industries (Tuban Petro).
The transaction will be settled under a subrogation method enabling Honggo to replace the role of PPA as Tuban Petro's creditor. Subrogation is the transfer of a creditor's rights to a third party who pays a sum of money to the creditor.
Tuban Petro controls a 59.5% stake in Trans Pacific Petrochemical Indotama (TPPI) and an 80% stake in PT Polytama Propindo. TPPI is an integrated petrochemical producer in the northern coast of Tuban, East Java. The lines of products cover light naphtha for plastic raw material, aromatic for textile raw material, and oil fuel products. It also has a capacity to produce 3.6 million tons of aromatic per year, making it the largest aromatic plant in Southeast Asia.
The transaction will be settled by the end of June this month and the realization of the transaction will raise IDR3.2 trillion in proceeds for the state.
President Director of PT PPA Mohammad Syahrial revealed the legal documentation process of the settlement was still taking place.
"Our legal process is being helped by the Deputy Attorney General for Civil and State Administrative Affairs. The Department of Finance has also approved Honggo to settle debts," he said me over last weekend.
Monday, May 5, 2008
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