Heidelberg reduces Indonesian stake
10 June 2009
Heidelberg Cement has cut its stake in Indonesia's largest cement manufacturer to 51% in a bid to raise cash and pay down debt.
The company has sold 521 shares in PT Indocement Tunggal Prakarsa via a private placement to unnamed institutional investors. The shares represent 14.1% of Indocement's capital, and the sale has reduced Heidelberg's interest in the company from 65.1% to 51%.
Heidelberg Cement raised € 220 million (US$ 307 million) through the sale, which it will use to pay down debt. Chairman Dr Bernd Scheifele said, "At 51% we will retain our controlling stake in Indocement, while being able to further deleverage the parent company.
According to Heidelberg Cement, Indocement is Indonesia's largest cement manufacturer, with a capacity of 17.1 million tonnes per year.
