Krakatau to restructure subsidiaries

IDX-listed steel maker PT Krakatau Steel Tbk plans to start restructuring its subsidiaries next month including through merger or divestment in a bid to help cope with the current drop in steel price, Investor Daily reported on Monday.

Finance Director Anggiasari Hindratmo was quoted as saying that a study by its consultant, PT Bahana Securities, is expected to be completed this month.

Anggiasari added that an option for initial public offering (IPO) of the subsidiaries to raise funds for expansion is also being evaluated.

Krakatau Steel has a number of subsidiaries including 100 percent shares in PT Krakatau National Recources, PT KHI Pipe Industries, PT Krakatau Wajatama, PT Krakatau Engineering, PT Krakatau Industrial Estate Cilegon, PT Krakatau Information Technology, PT KrakatauTirta Industri, PTKrakatau Bandar Samudera, and PT Krakatau Daya Listrik.

The company owns 98 percent stake in PT Krakatau Medika and 66 percent in PT Meratus Jaya Iron Steel.

Krakatau also is engaged in a number of joint venture firms including PT Krakatau Nippon Steel Sumikin (20% shares), PT Krakatau Posco (30%), PT Krakatau Osaka Steel (20%), PT Latinusa (20%), PT Krakatau Semen Indonesia (50%), PT Indo Japan Steel Center (20%), and PT Kerismas Waritikco Makmur (30%). (*)