The Siam Cement Group (SCG) has reached agreement to purchase a combined 30% equity stake in PT Chandra Asri Petrochemical Tbk (CAP), Indonesia's leading integrated petrochemical company, from PT Barito Pacific Tbk (Barito), and from Apleton Investments Limited, a wholly-owned subsidiary of Temasek Holdings (Private) Limited.
SCG Chemicals, wholly-owned by SCG, has entered into separate Share Purchase Agreements to acquire a 23% stake in CAP from Temasek and another 7% stake in CAP from Barito. This transaction is valued at IDR 3,760,383,285,400 (approximately 13,500 MB), or IDR 4,088 per share.
CAP is the leading integrated petrochemical complex operator in Indonesia, and produces polyethylene (PE), polypropylene (PP), styrene monomer and various other olefins products. This landmark investment represents a key component in SCG's strategic vision to become a sustainable business leader in ASEAN.
With its attractive demographics, high growth potential, and ample untapped demand, SCG sees Indonesia as key strategic country in ASEAN. This investment offers a unique opportunity for SCG to participate in Indonesia's leading petrochemical franchise, and represents the largest international investment to date for SCG.
"It is our great pleasure to welcome SCG onboard as our strategic partner. With SCG's operational excellence and its numerous successful partnerships with leading international chemical groups, we are confident that this partnership will enable CAP to successfully embark on its next phase of expansion, including further developing its downstream products, in the process delivering higher value to CAP's shareholders." said Mr. Prajogo Pangestu, President Commissioner of Barito.
"This unique opportunity represents an optimal combination of partners that complement each other. We believe that our new partnership with Barito will enable CAP to capture significant growth potential through cracker expansion. We will also evaluate attractive opportunities beyond the existing petrochemical complex, together with Barito. This investment represents an important stepping stone in becoming a leading petrochemical player in ASEAN." said Mr. Cholanat Yanaranop, President of SCG Chemicals.
About PT Chandra Asri Petrochemical Tbk.
PT Chandra Asri Petrochemical Tbk is a listed company on the Indonesia Stock Exchange (IDX) under the quote TPIA. As per 31 March 2011, the company has total asset of 13.4 trillion Rupiah ($1.5 billion) and recorded first quarter sales of 4.7 trillion Rupiah ($547 million). CAP is currently the leading integrated petrochemical complex in Indonesia, located in Cilegon, a major coastal industrial city in the province of Banten, West Java, Indonesia.
With a capacity of ethylene at 600,000 tons per year, propylene at 320,000 tons per year, PE at 320,000 tons per year, PP at 480,000 tons per year, and styrene monomer at 340,000 tons per year, the complex is the leading integrated petrochemical manufacturer and distributes chemical products to many industries in Indonesia. More information about CAP can be found at www.chandra-asri.com.
About PT Barito Pacific Tbk
PT Barito Pacific Tbk (BRPT) was established in 1979 and listed its shares on the Jakarta and Surabaya bourses (recently merged to become the Indonesia Stock Exchange/IDX) in 1993. BRPT engaged in the forestry, petrochemicals, property and plantation industry sectors, and ultimately evolved into a fully diversified resource-based enterprise with growing interests in the mining and energy sectors, among other developments. More information about Barito can be found at www.barito-pacific.com
About SCG
The Siam Cement Group, established in 1913, is publicly listed on the Stock Exchange of Thailand. SCG is Thailand's largest industrial conglomerate with leading market positions in each of its core businesses of chemicals, cement, paper, building materials, and distribution. Under its five core businesses, SCG has interests in over 200 companies, employs more than 34,000 employees, and manufactures more than 64,000 products.
SCG Chemicals continues to expand its business presence into international markets, and places a strong emphasis on innovation in products/services, processes, and business models in service of its diverse and sophisticated customer base. In addition, SCG Chemicals has partnered with a number of the world's leading chemical firms. More information about SCG and SCG Chemicals can be found at www.scg.co.th.