Heidelberg reduces Indonesian stake

By Chris Sleight10 June 2009

Heidelberg Cement CEO Dr Bernd Scheifele.

Heidelberg Cement CEO Dr Bernd Scheifele.

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.

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