Indonesian oil giant Chandra Asri buys 11.9% stake in Hiap Seng Industries; shares up 58.3%

[SINGAPORE] Indonesian petrochemical producer Chandra Asri has purchased an 11.9 per cent stake in the shares of Hiap Seng Industries and is now its newly-minted substantial shareholder.

As at 11.54 am, shares of Hiap Seng Industries were 58.3 per cent up, at S$0.019, with some 133.1 million shares transacted.

With this development, future partnerships between both companies could be on the horizon, said Hiap Seng Industries on Wednesday (Jul 23).

Chandra Asri is a subsidiary of Barito Pacific, the Indonesian power and industrial giant founded by billionaire tycoon Prajogo Pangestu.

Max Tan, Hiap Seng Industries’ chief executive officer, said: “(We) view this as a potential opportunity to explore strategic collaborations that will enhance long-term value for all stakeholders.”

Mashhad Dohadwala, projects and technology director at Aster Chemicals and Energy, Chandra Asri’s joint venture with global commodities trader Glencore, said that the strategic relationship with Hiap Seng Industries would strengthen Aster’s foundation to position it for future growth as it explores partnership opportunities.

Aster was said in early July to be in exclusive talks to buy oil major ExxonMobil’s Singapore gas stations.

Prior to that, it completed its purchase of Shell’s Singapore refinery and refining assets on Bukom and Jurong islands.

Hiap Seng Industries was formerly named Hiap Seng Engineering.