Thailand's Siam Cement keen on stake in two Indonesian companies

31 August 2011 04:00  [Source: ICIS news]

(recasts paragraphs 7-9 for clarity)

SINGAPORE (ICIS)--Siam Cement Group (SCG) is interested in buying a stake in Indonesia’s sole cracker operator Chandra Asri and chemicals maker Sulfindo Adiusaha, a spokesperson at the Thailand-based firm said on Wednesday.

“Its true, but we do not have an official stance on the investment as of now,” the spokesperson said.

The spokesperson was responding to queries regarding a Bangkok Post report on Wednesday that quoted SCG’s president and CEO Kan Trakulhoon as saying that the firm is interested in acquiring a stake in the Indonesian producers.

"We cannot disclose anything at the moment because the deals are quite big," Kan was quoted as saying in the report.

Temasek Holdings, the investment arm of the Singapore government, is keen on selling its entire stake in Chandra Asri which the firm acquired in 2006, according to various news reports.

Temasek Holdings could not be reached for comment.

The Bangkok Post report also said that Thailand-based petrochemical major PTT Chemical is among the potential buyers of Temasek Holdings' 23% stake in Chandra Asri, which operates a 600,000 tonne/year naphtha cracker at Cilegon in West Java.

Meanwhile, South Korean producer Honam Petrochemical have also been reported as being interested in buying a stake in Chandra Asri, while Hanwha Chemical was rumoured to be interested in a bid for chemicals maker Sulfindo Adiusaha.

"What's in the news are rumours and we have no official statement to make on the issue [acquisition of a stake in Chandra Asri]," said a company official from the investor relations department of Honam Petrochemical.

A PTT Chemical spokeswoman declined to comment on the issue, while Hanwha Chemical could not be reached for comment.

Read more about Temasek Holdings and Chandra Asri in Asian Chemical Connections

By: Nurluqman Suratman

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