Cemex: Time's up: Problems prevails
Cemex Asia Holdings confirmed today through its letter to SOE Minister Sugiharto that the time for Indonesia government to exercise its first right of refusal (FRR) had been expired and the cement giant is free to sell the 25.5% shares of PT Semen Gresik Tbk to anybody.
In the letter cc-ed to President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla, Cemex also stated that Indonesia government can't assign third parties or affiliates to exercise the FRR and buy the shares.
Sugiharto immediately responded the letter saying government is asking lawyer to review Cemex's letter. "This is a legal issue. I will ask government's lawyer to review," Sugiharto is quoted by Tempointeraktif.com.
Meanwhile Detik.com quoted Sugiharto saying there are three issues to be considered. First, government's sole right to buyback the shares divested since 1998. Second, the time frame of 60 days demanded is based on New York Law. Third, Cemex should drop the arbitrary suit.
Cemex letter might seal Rajawali Corporation's US$337 million (some says the discount is too big) deal to acquire 24.9% shares. But the problem is not over yet, at least for Rajawali or to whom Cemex want to sell the shares. The company might be under annoying situation for the rest of its ownership if it couldn't make peace, a costly one, with the situation. The discounted price explains. On the other side, a new legal action from Sugiharto would prevent Cemex from dropping the arbitrary move.
As for Sugiharto, this saga is an important test for his position. He's just like a student who ask for more time to answer the questions for neglecting his homeworks most of the time. President Susilo, as a lecturer (he is a real lecturer but I'm not sure about his subject), might say to Sugiharto: Time's up, get out of the room! Anyway, October, the cabinet's annual exam is just few months away.
READ MORE!!!
In the letter cc-ed to President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla, Cemex also stated that Indonesia government can't assign third parties or affiliates to exercise the FRR and buy the shares.
Sugiharto immediately responded the letter saying government is asking lawyer to review Cemex's letter. "This is a legal issue. I will ask government's lawyer to review," Sugiharto is quoted by Tempointeraktif.com.
Meanwhile Detik.com quoted Sugiharto saying there are three issues to be considered. First, government's sole right to buyback the shares divested since 1998. Second, the time frame of 60 days demanded is based on New York Law. Third, Cemex should drop the arbitrary suit.
Cemex letter might seal Rajawali Corporation's US$337 million (some says the discount is too big) deal to acquire 24.9% shares. But the problem is not over yet, at least for Rajawali or to whom Cemex want to sell the shares. The company might be under annoying situation for the rest of its ownership if it couldn't make peace, a costly one, with the situation. The discounted price explains. On the other side, a new legal action from Sugiharto would prevent Cemex from dropping the arbitrary move.
As for Sugiharto, this saga is an important test for his position. He's just like a student who ask for more time to answer the questions for neglecting his homeworks most of the time. President Susilo, as a lecturer (he is a real lecturer but I'm not sure about his subject), might say to Sugiharto: Time's up, get out of the room! Anyway, October, the cabinet's annual exam is just few months away.
READ MORE!!!
posted by yosef at 10:50 PM
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