The Jakarta Post
Publicly listed cement producer PT Holcim Indonesia has officially changed its name to PT Solusi Bangun Indonesia following its acquisition by a subsidiary of state-owned cement producer PT Semen Indonesia, PT Semen Indonesia Industri Bangunan (SIIB).
Late last month, SIIB took over 6.18 billion shares, equal to 80.64 percent of ownership of Holcim Indonesia previously owned by Dutch cement producer Holderfin BV, a subsidiary of Swiss-based building material company LafargeHolcim.
The transaction amounted to Rp 12.96 trillion (US$922.42 million).
Semen Indonesia corporate secretary Agung Wiharto said on Monday that the acquisition was aimed at increasing the country's cement plant network and strengthening the company's supply chain.
"The takeover of Solusi Bangun Indonesia will also strengthen our ready mix business," he said after an extraordinary general shareholders' meeting in Jakarta.
He also said the acquisition would hopefully improve Semen Bangun Indonesia's financial position after the company endured losses since 2016 due to tough competition in the cement industry.
"After the acquisition, hopefully we can make distribution and raw material costs more efficient, as the company will be integrated into Semen Indonesia," he said.
Despite the 7.2 percent increase in sales to Rp 7.37 trillion, Semen Bangun Indonesia’s losses totaled Rp 630.36 billion in the third quarter of 2018.
The names of Solusi Bangun Indonesia’s subsidiaries, namely PT Holcim Beton and PT Lafarge Cement Indonesia, were also changed to PT Solusi Bangun Beton and PT Solusi Bangun Andalas, respectively.
Holcim Indonesia was established in 1971 and listed on the Indonesia Stock Exchange (IDX) in 1977. (bbn)