Two Japanese steel companies are ready to acquire PT Nusantara Baja Profil, a business entity of PT Gunung Raja Paksi Tbk (GGRP).
This acquisition was carried out through a joint investment scheme between the Hanwa Co Ltd and Yamato Kogyo Co Ltd groups, Hanwa Co Ltd through its subsidiary PT Hanwa Indonesia acquired Nusantara Baja from GGRP and its affiliated company PT Gunung Garuda.
This joint investment involves Hanwa, Yamato Kogyo, and Siam Yamato Steel Co Ltd. Siam Yamato Steel is a subsidiary of Yamato Kogyo, operating in Thailand, the planned acquisition of Nusantara Baja is scheduled for the first quarter of 2024. After the acquisition, Yamato Kogyo will hold 45% of Nusantara Baja shares, while Siam Yamato Stell will hold 35%, Hanwa Indonesia will hold 15% and GGRP will hold 5%. According to Reuters, the acquisition transaction value reached US$ 340 million or around Rp 5.16 trillion.
Nusantara Baja is a steel manufacturing company in Cikarang, Bekasi, with a production capacity of 900,000 tonnes of rolling steel per year. Gunung Raja Paksi’s Corporate Affairs Director, Fedaus, was tight-lipped about the corporate action. However, Fedaus confirmed that Hanwa and Yamato are exploring the acquisition of Nusantara Baja.
Kanaka Hita Solvera Equity Analyst William Wibowo sees the acquisition plan as a positive sentiment for GGRP shares. However, Investment Analyst Infovesta Kapital Advisori Fajar Dwi Alfian suggested that investors should wait and see first.
Source kontan.co.id
