Jamsostek to acquire Krakatau Steel shares

State workers’ insurance company Jamsostek revealed Tuesday its plan to acquire shares of state steel producer Krakatau Steel during its upcoming Initial Public Offering (IPO).
“We are ready to buy Krakatau shares,” Jamsostek president director Hotbonar Sinaga said.
However, the company will conduct an internal review of its assessment of how many shares to acquire.
“We will allocate our own reserve capital to finance the acquisition, but it will be less than Rp 500 billion (US$56 million),” Sinaga said.
“The budget will come from our own deposits,” he said.
Krakatau Steel will issue a 19.61 percent stake through a November IPO. The shares are expected to be priced between Rp 800 and Rp 1,150 per share.