Local reports said HIT is planning to spend up to $100m to acquire a controlling stake in the undisclosed foreign company this year as it aims to leverage on Indonesia's growing LNG industry.
President director Theo Lekatompessy said HIT is currently in talks to acquire an at least 51% stake in the company which is expected to cost between $50m to $100m, however he added that the asking price is still too high at the moment. Theo said that the company focuses on shipping LNG and it has operated its business in Indonesia for a long time.
HIT has already set aside half of the total acquisition cost from internal resources and is also seeking bank loans to help finance the rest. Theo said HIT was focussing on LNG for the future as it expects to benefit from cabotage rules. “The company’s plan is to acquire an LNG shipping company because [the prospect] of such business is getting better. LNG production is forecast to keep on increasing,” he said.
HIT is also setting aside $115m to purchase six new vessels this year. It has said it will spend $30m to buy two oil tankers, $40m for two cement carriers and $15m for one chemical tanker.
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