Sunday, May 10, 2009

Holcim Indonesia acquire sister operation

PT Holcim Indonesia Tbk (HIL) outlined its plans to assume majority ownership of Holcim Sdn. Bhd. (HSB) a private limited liability company domiciled in Malaysia. Shareholder approval will be sought at an Extraordinary General Meeting to be held on May 18th 2009, after the company’s Annual General Meeting of Shareholders.
HSB owns and operates a 1.2 million tonne per year cement grinding station, blending plant and ready-mixed concrete operation in the southern peninsula state of Johor, Malaysia. The plan is intended to capitalise on a growing market and Holcim’s established presence there. It has benefits to both parties: a secure source of clinker for HSB, a reliable source for utilising available clinker capacity at HIL and a valuable source of foreign currency earnings to enhance HIL shareholder value. It is envisaged this provides HIL with further flexibility in future in serving Indonesian inter-island sites from this facility.
The proposed plan constitutes an affiliated transaction under Bapepam & LK regulations and consequently shareholder approval is required. The acquisition will be financed from internally generated funds and bank finance.

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