Posted on 11 Aug 2023
Yamato Kogyo Group says the company's board of directors has decided to expand its investment in the Southeast Asian market by acquiring a sections mill in Indonesia.
The target company is PT Nusantara Baja Profil, which is 99% owned by PT Gunung Raja Paksi Tbk. PT Nusantara Baja Profil was established in August 2022 and currently has a steelmaking capacity of 1 million tonnes/year and a rolling capacity of 900,000 t/y, Kallanish notes.
Yamato Kogyo Group aims to hold 80% of PT Nusantara Baja Profil at a cost of $340 million. Of this, 45% will be directly held by the group and the remaining 35% by its Thai subsidiary, Siam Yamato Steel (SYS). Hanwa Kogyo Group will hold 15% of the company's shares, while the other 5% will be retained by PT Gunung Raja Paksi Tbk. The acquirer aims to boost sections production capacity in Southeast Asia.
After the completion of this transaction, which has been planned for the June-2024 quarter, PT Nusantara Baja Profil will become a consolidated subsidiary of Yamato Kogyo Group.
Source:Kallanish
