Bosowa to name strategic partner in first quarter 2009

Jakarta (ANTARA News) - PT Semen Bosowa expects to get an investor to become its strategic partner in the first quarter in 2009 to develop the company, its chief executive officer, Erwin Aksa, said here on Monday. 

"It is hoped there will already be an investor to join in the company in the first quarter of 2009," he said. 

The cement company based in South Sulawesi is currently needing funds to increase its production capacity. 

The company actually already plans to conduct an Initial Public Offering as one of the options to raise the money which is expected to reach US$100 million. 

However "considering current market situation which is not favourable I think the plan will be postponed and so the company will focus on seeking a strategic partner," he said. 

Three investors that have expressed their interest to become the company`s strategic partner so far are Lafarge from France that has so far owned stakes in the Andalas cement factory, the Siam Cement which is the largest cement producer in Thailand and YTL from Malaysia. 

"The possibility to conduct an IPO is still to be further considered but it will likely be materialized after the company gets an investor partner," he said. 

He said in the coming partnership agreement Bosowa would be the majority shareholder and the investor a mere minority stakeholder to help improve the company`s technical operations, management and technology application. 

Erwin said he hoped with the presence of an international-level investor in the company PT Bosowa would become the fourth largest cement company in the country. 

In 2008 Bosowa`s production is projected at 2.5 million tons a year while until September this year it has produced up to two million tons. 

"With the presence of the strategic investor Bosowa`s production is expected to reach five million tons a year in 2012," he said. 

At present 98 percent of five percent of the company`s market share is domestic, leaving the rest two percents for Timor Leste.