The Jakarta Post reported that PT Krakatau Steel reportedly wants to buy out its local partners to increase its stake in IndoJapan, a jointly held automobile sheet steel company, to 20%.

Mr Wawan Hernawan commissioner at IndoJapan said that auto parts producer PT Adyawinsa Dinamika and distributor PT Dwijaya Sentosa Abadi agreed to sell their stakes in PT IndoJapan Steel Center in an internal deal that was reached in early May 2012.

Mr Wawan said that "Nippon will have up to 80%. Meanwhile, Krakatau Steel will absorb an additional 10%." He added that Krakatau would pay IDR 10 billion for the stake as IndoJapan's valuation had reached IDR 100 billion.

Mr Wawan said that Krakatau Steel would supervise general operations, purchasing, financing and human resources at IndoJapan after Adyawinsa and Dwijaya sold their stakes.

Mr Wawan, who was previously a vice president of corporate communication for Krakatau Steel, said that he would likely be named IndoJapan's director and a Krakatau Steel executive would replace him as an IndoJapan commissioner. He added that "We will still need to wait for a shareholders meeting of IndoJapan, hopefully, next week. We hope that the new board will make IndoJapan more solid and able to make decisions faster."

Krakatau Steel currently holds a 10% stake in IndoJapan Steel, while 30% stakes are held by PT Adyawinsa Dinamika and PT Dwijaya Sentosa Abadi and the Nippon Steel Trading Co Limited, the trading arm of Japan's largest steel producer, Nippon Steel Corporation.

Source - Jakarta Post

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