Reporter: Yoliawan H | Editor: Hasbi Maulana
KONTAN.CO.ID - JAKARTA. The plan of PT Semen Indonesia Tbk (SMGR) to acquire PT Holcim Indonesia Tbk (SMCB) can increase SMGR's domestic market share.
SMGR Corporate Secretary Agung Wiharto said that in September the market share of SMGR itself had touched 39.6% and the market share of SMCB was 15.2%. That means, after this acquisition, Semen Indonesia Group's market share can reach 55% of the total cement sales volume in Indonesia.
Seeing this condition, analyst Panin Sekuritas, William Hartanto assessed that the position of SMGR was very strong at the peak of the domestic cement market. In the second place, PT Indocement Tunggal Prakarsa Tbk (INTP) controlled a market share of around 26.74%. "After this acquisition, we estimate that SMGR can monopolize the domestic cement industry," William told Kontan.
William recommends buying SMGR shares with a target price of IDR 10,000 per share. Regarding SMCB's shares, he advised investors to hold and sell when the price touched Rp. 2,300 per share.
For your information, the second transaction of the cement producer can be completed in December 2018 or January 2019. Agung estimates that the purchase price of SMCB by Semen Indonesia is around Rp.1,100-Rp.2,200 per share.
The stock price of the tender offer, according to Agung, will be formed based on the highest price after 90 days after the signing or the highest price after the transaction ends.