JAKARTA, Feb 8 (Reuters) - Indonesian state firm PT Krakatau Steel plans an initial public offering in November, President Director Fazwar Bujang said on Monday, against an earlier plan for the middle of 2010.
Krakatau Steel is one of several Indonesian state-owned firms slated for privatisation, although last year's financial crisis had also delayed plans for a sale.
'We hope to have an IPO in November 2010. We will sell a maximum 30 percent stake,' Bujang said, without estimating how much it was looking to raise.
The executive did not give a reason for the delay, but State Enterprises Minister Mustafa Abubakar has said the government had asked the firm to review the impact of the ASEAN-China free trade pact on the steel industry before launching the IPO.
The trade pact between the 10-member Association of Southeast Asian nations and China came into effect at the start of the year, but there have been concerns in Indonesia over the potential impact on sectors such as steel and textiles from Chinese imports.
Proceeds from the IPO would be used to finance capital expenditure and could help ensure greater access to external financing, Bujang said.
Krakatau Steel, Indonesia's largest steel producer, sold 2.11 million tonnes of steel products in 2009, up from 2.21 million tonnes in 2008.
The firm signed a preliminary agreement last year with South Korea's POSCO to build a new steel plant at Krakatau Steel's vast industrial area in Cilegon West Java.
The new plant would have an initial capacity of 3 million tonnes which would be increased gradually to 6 million tonnes a year.
(Reporting by Andreas Ismar; Writing by Fitri Wulandari; Editing by Ed Davies)
((fitri.wulandari@thomsonreuters.com; Reuters Messaging: fitri.wulandari.reuters.com@reuters.net; +62 21 384 6364 ext 904)) Keywords: KRAKATAUSTEEL INDONESIA/IPO (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Krakatau Steel is one of several Indonesian state-owned firms slated for privatisation, although last year's financial crisis had also delayed plans for a sale.
'We hope to have an IPO in November 2010. We will sell a maximum 30 percent stake,' Bujang said, without estimating how much it was looking to raise.
The executive did not give a reason for the delay, but State Enterprises Minister Mustafa Abubakar has said the government had asked the firm to review the impact of the ASEAN-China free trade pact on the steel industry before launching the IPO.
The trade pact between the 10-member Association of Southeast Asian nations and China came into effect at the start of the year, but there have been concerns in Indonesia over the potential impact on sectors such as steel and textiles from Chinese imports.
Proceeds from the IPO would be used to finance capital expenditure and could help ensure greater access to external financing, Bujang said.
Krakatau Steel, Indonesia's largest steel producer, sold 2.11 million tonnes of steel products in 2009, up from 2.21 million tonnes in 2008.
The firm signed a preliminary agreement last year with South Korea's POSCO to build a new steel plant at Krakatau Steel's vast industrial area in Cilegon West Java.
The new plant would have an initial capacity of 3 million tonnes which would be increased gradually to 6 million tonnes a year.
(Reporting by Andreas Ismar; Writing by Fitri Wulandari; Editing by Ed Davies)
((fitri.wulandari@thomsonreuters.com; Reuters Messaging: fitri.wulandari.reuters.com@reuters.net; +62 21 384 6364 ext 904)) Keywords: KRAKATAUSTEEL INDONESIA/IPO (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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