SMGR Targets to Acquire 3 Companies

SMGR Targets to Acquire 3 Companies

Semen Indonesia Tbk (SMGR) is targeting to realize the acquisition of three companies by the end of this year. The company is aiming a cement company in Bangladesh and two construction materials companies in Indonesia to complement its business.

Ahyanizzaman, Marketing and Supply Chain Director of SMGR, said that the company wants to become the majority shareholder in these targeted companies. “We are trying to finish this year due to the finalization, depending on the negotiation with the targeted company,” said Ahyanizzaman. The company is reluctant to mention the allocated funds for acquisition concerning that it will affect the negotiation process.

The expansion into Bangladesh is part of the regional expansion and is done through its subsidiary, Semen Indonesia Internasional. Cement companies aimed by SMGR are still importing clinker which is cement raw material with production capacity below two million tons per year. “We can send clinker and it will be milled in Bangladesh,” said Ahyanizzaman.

The company expanded overseas to enlarge its export sales. Currently, the export contributes nine percent to total revenue.

The other two companies to be acquired by SMGR are cement plaster and ready-mix companies. Both companies will complement the company’s business line and increase revenue in the future. (*)

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