PT Holcim Indonesia Tbk shares rise steeply

The stock price of PT Holcim Indonesia Tbk rose steeply in trading this week. Rumours related to the divestment of shares owned by LafargeHolcim in Indonesia raised optimism in the company’s shares.

According to CNBC Indonesia, Thursday, 25 October trading took the company’s share price up by 10.87 per cent to IDR1785/share (US$0.118/share). Trading volume was also quite large reaching 47.02m  shares valued at IDR81.5bn.

Since May speculation about the release of PT Holcim Indonesia Tbk shares by LafargeHolcim has fuelled the subsidiary's stock price. In the last six months, the price of PT Holcim Indonesia Tbk shares rose 123.13 per cent.

LafargeHolcim, which holds full control over Holcim Indonesia by controlling 80.64 per cent or equivalent to 6.18bn of PT Holcim Indonesia Tbk shares through its subsidiary, Holderfin BV Lafarge, will reportedly release its ownership, which has been widely used since two months ago.
 
The names of interested companies to buy Lafarge's shares include: China Anhui Conch, Taiheiyo Cement Corp and YTL Corp. 

In addition, PT Semen Indonesia Tbk, and HeidelbergCement AG, shareholders of PT Indocement Tunggal Prakarsa Tbk, were also expected to participate in the battle to seize Lafarge's shares in Holcim.

According to CNBC Indonesia, Semen Indonesia seems to be the strongest candidate to buy Holcim's shareholding.

Moreover, the team from Semen Indonesia is currently in Europe and this has raised suspicion that there is a finalisation process of talks between Semen Indonesia and Lafarge regarding the purchase of shares.

PT Holcim Indonesia Tbk has a production capacity of 15Mta of cement from its production sources on Sumatra and Java. That figure is equivalent to around 14 per cent of the total national production capacity, 110Mta.