Krakatau Steel Collaborates with BUMN Karya to Acquire Steel Company

PT Karakatau Steel Tbk (KRAS) has plans to acquire a steel producer company. The plan will be carried out by cooperating with other SOEs engaged in infrastructure.

Krakatau Steel’s Managing Director, Silmy Karim, said his party was still trying to realize the plan. It is targeted that the acquisition plan will be carried out in the middle of this year.

“Still on track, the acquisition is planned for the second quarter or quarter III-2019. But it has already entered there,” he said at the IDX Building, Jakarta, Friday (01/04/2018).

It also has obtained several BUMN Karya which will become partners in acquiring the steel company. He ensured that Krakatau Steel would become the majority shareholder of the steel company that was about to be acquired.

“It has been a trial with the SOE of its acquisition, we are the majority. But I have not been able to speak, because they are Tbk (a company whose shares are listed on the capital market),” he explained.

Even so, Silmy emphasized that his party was focusing on improving the performance of the company that still suffered losses. Efforts to improve it by saving the steel industry from the attack of imported steel products.

According to him, imported steel has been outsmarting the Harmonized System (HS) from carbon steelmen into alloy steel. So that the product will get a lower rate than other types of steel products. This is because of the policy of the Minister of Trade Regulation 22/2018.

For this reason, his party is proposing to the government that the Permendag be revised. The proposal was accepted by the government.

In addition, the company also focuses on restructuring the company’s debt which currently reaches around US $ 2 billion. One of the choices is to exchange debt into share ownership or debt to equity swap.

In addition to exchanging debts for share ownership, Krakatau Steel will also make other efforts such as extending the debt eye to bid on the amount of interest. (das / ara)

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