State cement producer Semen Indonesia (SMGR) has reportedly joined the tender offer program of listed cement producer Holcim Indonesia (SMCB). The Switzerland’s cement producer LafargeHolcim holds 80.64% or 6.18 billion shares of SMCB through its subsidiary, Holderfin B.V. Lafarge. Since last July, 2018, the company has considered to sale of its Indonesian unit for a total consideration of US$2 billion.

Holcim Indonesia has suffered from overcapacity and price pressure in recent years, placing pressure on profit margins. Nevertheless, the long-term potential of the market and the company’s strong market position make this a significant and surprising move.

Beside Semen Indonesia, other potential buyers namely China’s CNBM and Anhui Conch, Thailand’s Siam Cement Group, India’s Ultratech, Japan’s Taiheiyo Cement Corp, Malaysia’s YTL Corp is also rumored to be buying LafargeHolcim shares.

Followed the rumors, one of Holcim’s shareholders British investment company Standard Life Aberdeen Plc announced at the Indonesia Stock Exchange on Oct. 5 and 9, that it was releasing 394.23 million shares of SMCB at Rp1,059 – Rp 1,092 per share. on October 5 and 9 2018. After the transaction, Aberdeen’s share ownership decreased from 10.32% to 5.18%.