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PT Krakatau Steel to List Three Subsidiaries

Steel News - Published on Tue, 23 Jul 2019

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The Jakarta Post reported that state owned Indonesian steel producer PT Krakatau Steel plans to publicly list three of its subsidiaries, as part of a major corporate reorganization. Krakatau Steel president Silmy Karim identified the three subsidiaries as PT Krakatau Tirta Industri, PT Krakatau Bandar Samudera and PT Industrial Estate. He told “We’re still thoroughly considering whether we should optimize our corporate synergy before holding an initial public offering IPO or the other way around.”

He said that the three subsidiaries would go public in three years at the latest.

In addition to publicly listing three of its subsidiaries, Krakatau Steel also plans to divest several other subsidiaries, and is focused on raising USD 1 billion from the sales of non-core assets. Silmy said the company needed a strategic partner to help optimize its production line and corporate expansion, as well as increase efficiency. He said “We have invited McKinsey & Company to assess the ideal business structure for Krakatau Steel.”

Krakatau Steel has spent most of the year focusing on major reorganization in an effort to plug the losses it has suffered over the last six years.

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Posted By : Ratan Singh on Tue, 23 Jul 2019
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