Arqaam Capital (“Arqaam”) is pleased to announce that CTI Group Inc. (“CTI”), a cement and clinker trading company that owns and operates a fleet of cement carriers and cement shore terminals worldwide, has made an investment in Indonesia’s largest independent clinker grinding unit in Batam (“PT Semen Batam”), owned by Bosowa Corporation.
Commenting on the transaction, Mr. Mazen M. Dajani, Chief Executive Officer of CTI, said, “Semen Batam is a leading regional player, with a large share of the local market. This investment supports our strategic plan to diversify into cement production, which ultimately provides tremendous support to our core business of cement and clinker trading. This transaction will help CTI establish a presence in an important region and we look forward to utilizing the synergies of both companies to gain a competitive advantage in Semen Batam’s main markets and across the region as a whole.” Arqaam worked closely with CTI to explore strategic options to expand markets and products. Mr. Dajani added, “Arqaam’s expertise in working the various issues of cross-border transactions, including structuring, governance issues and the regulatory environment were instrumental in the success of this deal.”
Mr. Erwin Aksa, President Director of Bosowa Corporation commented, “We are extremely pleased to have partnered with CTI. This is an important milestone in the development of Semen Batam. With the economic recovery, cement consumption is expected to climb in the Southeast Asia region and in Indonesia, in particular. To position ourselves to take advantage of the likely growth in cement consumption, it was imperative that we explore strategic partnerships with credible, global players in the cement sector who would support our expansion plans and help us grow further. We believe that CTI, with its considerable experience and knowledge in cement and clinker trading, shore terminal and cement bulk carrier operations, will be a valuable partner in growing Semen Batam’s reach, both regionally and internationally.”
Mr. Tamer Makary, Executive Director of Arqaam Capital, said: “Arqaam Capital’s Corporate Finance division is going from strength to strength. The successful completion of the transaction shows our ability to leverage off of the strength of our relationships in the MENA region and internationally and to structure and execute complex cross-border transactions efficiently and within tight timeframes.”
Arqaam Capital acted as the exclusive financial advisor to CTI on this transaction. Terms of the transaction were not disclosed.
Hill Dickinson LLP acted as the exclusive legal advisor to CTI on this transaction.
Founded in 1990 and headquartered in Amman, Jordan, CTI was established as a cement and clinker trading company. Continuous growth in its market share and a steady acquisition of physical assets has made the company a leader in the cement sector. Today, CTI has diversified into all aspects of the cement value chain through horizontal and vertical integration and into other lucrative businesses to ensure the cost effectiveness and improved performance of its core competency of cement and clinker trading. CTI’s current fleet size stands at 21 ships, of which nine are bulk carriers and the remaining 12 are cement floating terminals or cement carriers. For further information on CTI, please visit www.cti-grp.com.About Bosowa Corporation
Bosowa was founded in 1973 by Mr. Aksa Mahmud, one of the leading entrepreneurs from Eastern Indonesia. Bosowa Corporation was setup as the holding company of the Bosowa Group and is currently headed by Mr. Erwin Aksa, President Director, who is also the eldest son of the founder. Bosowa is involved in various lines of business, including cement, automotive, property, resources, and infrastructure and is planning to expand its business to mining, plantation and forestry. For further information on Bosowa, please visit http://www.bosowa.co.id/.
Located in Kampung Baru, Batam, Riau Island province, Semen Batam’s cement grinding plant was inaugurated on December 2, 2008. Construction of the plant started in 2006 and was completed in early 2008. Currently, PT Semen Batam has an annual production capacity of 1.2 million tons of cement and the plant boasts state-of-the art technology and equipment from Germany, China, and Indonesia. The plant has a loading and unloading harbor equipped with a 150m jetty capable of handling ships up to 30,000 DWT, and 2 silos for the storage of raw materials, including storage capacity for 75,000 tons of clinker and 20,000 tons of gypsum and trass. The plant has 2 bulk loading facilities and packing equipment with a cement packing capacity of 2,500 tons per day.
Arqaam Capital is a fast-growing strong player in the investment banking world, bringing regional and international product offerings to the Middle East. Arqaam Capital creates and generates investment transaction opportunities and manages risk portfolios through offering a capital intermediation platform that facilitates access, both for Middle Eastern investors looking to invest in the region and internationally, and for international investors looking for opportunities in the Middle East. Arqaam Capital operates out of offices in Dubai and London. Its headquarters are in the Dubai International Financial Centre and it is authorized and regulated by the Dubai Financial Services Authority. Arqaam Capital has seven business lines - Equity Derivatives, Credit, Treasury, Brokerage, Corporate Finance, Asset Management and Custody. Further information on Arqaam is available at www.arqaamcapital.com.
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