Posted on 09 May 2024
Indonesian steel producer PT Gunung Raja Paksi Tbk (GRP) held an Extraordinary General Meeting of Shareholders (EGM) last week and approved a plan to sell shares in its Indonesia subsidiary at the meeting.
According to official information from GRP, the main agenda agreed upon in this EGM was the approval of the company's plan to sell shares of its subsidiary, PT Nusantara Baja Profil (NBP). A total of 9,699,984 shares will be sold to three strategic investors , namely Yamato Kogyo, Co. Ltd., Siam Yamato Steel Co. Ltd., and PT Hanwa Indonesia. This step was taken as a strategy to further develop the capacity and business reach of NBP, Kallanish notes.
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. It is 99% owned by GRP.
Roymond, the Finance Director of GGRP, added, "This share sale will not only strengthen our financial structure but also expand the Company's business network through close collaboration with strategic investors. We believe that this cooperation will open up more opportunities and create beneficial synergies, while also accelerating the Company's growth and innovation in the domestic steel industry."
In August 2023, Yamato Kogyo Group announced its plan to purchase the Indonesian steel plant. It targeted 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.
Source:Kallanish
