Tenaris Acquires Control of Seamless Pipe Indonesia Jaya
Tenaris S.A., a leading global supplier of steel tubes and related services for the world’s energy industry and certain other industrial applications announced today that it has completed the previously announced acquisition from Bakrie & Brothers TbK, Green Pipe International Limited and Cakrawala Baru of a 77.45% holding in Seamless Pipe Indonesia Jaya (“SPIJ”), an Indonesian OCTG processing business with heat treatment and premium connection threading facilities, for a purchase price of US$72.5 million, with US$ 24.9 million being payable as consideration for SPIJ’s equity and US$ 47.6 million as consideration for the assignment of certain sellers’ loan to SPIJ.
SPIJ 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 persons and had revenues of approximately US$140 million in 2008. The acquisition would allow Tenaris to strengthen its global production capabilities and its local presence in Indonesia, one of the world’s leading producers of LNG.