Apr 29, 2011

Siam Cement buys Keramika, Kokoh Inti

Ceramic products PT Keramika Indonesia Asosiasi Tbk (KIAS) and PT Kokoh Inti Arebama Tbk (KOIN) skyrocketed 20.69% and 11.18% after Thai leading cement maker Siam Cement Pcl announced takeovers of majority shareholdings in both companies.
Keramika Asosiasi jumped to Rp105 per share and Kokoh Arebama surged to Rp189 per share. 
Siam Cement Pcl, via its subsidiary SCG Building Materials Company Limited, has proposed a takeover deal of 93.47% shareholding in ceramic products PT Keramika Indonesia Asosiasi Tbk (KIAS).  
In tandem, SCG Distribution Company Limited, another subsidiary of Siam Cement, has proposed a majority stake in building material distributor PT Kokoh Inti Arebama Tbk (KOIN).
SCG Building Materials Company Limited has entered into shares sale and purchase agreements regarding to takeover of 93.47% stake or 7.88 million shares in Keramika Asosiasi on April 27 2011.
"The acquisition will boost SCG production capacity to 149 million meter cubic, help steadying its position the largest ceramic products maker," said Vice Presiden Finance and Investmen & CEO The Siam Cement, Chovalit Ekabut, today in a statement file to Thailand Stock Exchange.
Keramika Asosiasi is Indonesia's fifth largest ceramic products maker with 10% market share with 3 production facilities located in West Java and East Java.
Keramika has production capacity of 27 million meters cubic of floor and wall ceramics and 23 million sheets of roof and assessoris ceramics.  
"SCG aims to jack up Keramika Asosiasi capacity to 31 million meters cubic from current position of 4 million meters cubic."
SCG Distribution has entered into shares sale and purchase agreement to buy 70.35% stake or 690 million shares of Kokoh Arebama on April 28 2011.

Disclosure: No position at the stock mentioned above.  

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