Thailand's Siam Cement announces strategic investment shift in Indonesia

The Siam Cement Public Company Limited announced a strategic change in its investment approach, SCC's President and CEO said in a letter to the Stock Exchange of Thailand on June 11, as seen by Platts, part of S&P Global Commodity Insights on June 17.

SCC's wholly owned subsidiary, SCG Chemicals Public Company Limited (SCGC), will reclassify its investment in PT Chandra Asri Pacific Tbk (CAP), a prominent entity listed on the Indonesia Stock Exchange (IDX), from an Associated Company to Other Investments.

SCGC currently holds a 30.57% stake in CAP but is preparing to reduce this stake by 10.57%. This move aligns with SCGC's broader strategy to deleverage and reallocate capital toward future business opportunities. By decreasing its involvement in CAP's management, SCGC aims to streamline operations and focus on areas with higher growth potential.

"Transaction is still under consideration," a source close to the matter said June 17.

"We haven't issued the press release. If we have any, I will share later on," another source close to the matter said June 17.

As the transaction is still under consideration, SCC indicated that it was not yet possible to calculate the transaction size according to the rules for the acquisition or disposition of assets.