Cemex-Rajawali deal
After almost three weeks of delay, Cemex SA and Rajawali Corporation (through Blue Valley, a SPV) would likely to close the US$335 million deal on PT Semen Gresik Tbk shares next Wednesday as the shareholders agreement is scheduled to be signed 3PM today.
"If we could sign the shareholders agreement as scheduled at 3PM at the Ministry of State Owned Enterprises office today, then we could close the deal next Wednesday," people close to the transaction said.
Under the shareholders agreement, Rajawali is reportedly agree to one share one vote and no rights issue after it control 25% shares of Semen Gresik.
Besides, Cemex also agree to drop the arbitrary suit against Indonesia government. Cemex and government will sign the settlement agreement tonight.
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"If we could sign the shareholders agreement as scheduled at 3PM at the Ministry of State Owned Enterprises office today, then we could close the deal next Wednesday," people close to the transaction said.
Under the shareholders agreement, Rajawali is reportedly agree to one share one vote and no rights issue after it control 25% shares of Semen Gresik.
Besides, Cemex also agree to drop the arbitrary suit against Indonesia government. Cemex and government will sign the settlement agreement tonight.
Labels: Rajawali Corp
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posted by yosef at 12:41 PM
2 Comments:
I feel really bad for Cemex. They come in with the expectation for a bigger control in the company, bought the promises of the government (the Government did 'orally' say they would open up the way for Cemex to build a bigger stake in Gresik - but this was not honoured later, and instead, a put/call option structure was put in place instead of a more direct share-purchase strategy). on top of this, they had to face multiple labor strikes. Then the arbitration proceedings.
I'm a nationalist, i dont like foreign companies owning a part of our country. But if the Indonesian government has said it wants to do something (orally or under contract - all the same), they should do it.
If i am a foreign investor myself, I will seriously think twice or three times before thinking of putting anything in Indonesia... it's sad but it's the reality - investment risk is just too high
Semen Gresik transaction was done during the 1997 Financial Crisis period. The questions will really be did back then the government put itself FOR the people or simply to cash out ASAP so as to meet the privatization target? Was the transaction done in a hurry?
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