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PT PP eyes Krakatau Steel Subsidiary to Strengthen Water Supply Business

Steel News - Published on Thu, 22 Aug 2019

Image Source: BUMN
Publicly listed state-owned construction firm PT PP is set to acquire steel producer PT Krakatau Steel’s drinking water supply subsidiary in an effort to become the biggest drinking water supply company in the country. PT PP president director Lukman Hidayat said that the company was in talks with the state-owned steel maker to acquire shares of its subsidiary, drinking water provider PT Krakatau Tirta Industri that operates in Cilegon, Banten. He said that “We’re still in talks with Krakatau Steel, but we haven’t agreed on how many shares we’ll be buying from them.”

Finance director Agus Purbianto added that the publicly listed firm was seeking majority ownership in KTI so that it could bring added value to the company. He continued to said that PT PP’s interest in acquiring KTI stemmed from the fact that the drinking water supply provider already had its own captive market, as well as the fact that it managed to book profits for its parent company.

The company’s plan to acquire KTI is also in line with its longer term plan to venture into the drinking water supply business.

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Posted By : Ratan Singh on Thu, 22 Aug 2019
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