Tenaris acquires Indonesia?s OCTG processing business
Monday, March 2 2009 - 08:27 AM WIB
Luxembourg-based supplier of tubes and related services firm Tenaris has signed an agreement to acquire 77.45% share in PT Seamless Pipe Indonesia Jaya (SPIJ) from PT Bakrie & Brothers Tbk, Green Pipe International Limited and PT Cakrawala Baru.
Tenaris will pay US$73.5 million, including $ 24.9 million as equity and $ 48.6 million for the assignment of certain sellers' loan to SPIJ, the company said in statement last week.
SPIJ is producer of seamless steel pipes used as casing and tubing (OCTG) for oil, gas, and geothermal drilling application. SPIJ's customers include Total, Vico, ConocoPhillips and Pertamina.
SPIJ, which located in Cilegon industrial complex, Banten province, has an annual processing capacity of 120,000 tons and has had a commercial alliance with Tenaris for more than a decade. SPIJ employs around 500 people and had revenues of approximately US$140 million in 2008. (denny)