Antam wants a piece of Freeport<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government has officially requested state gold and nickel
\nminer PT Antam to carry out a due diligence study on the possible
\nacquisition of a 9.36 percent government stake in giant gold
\nproducer PT Freeport Indonesia.<\/p>\n
The publicly listed company would focus on the acquisition of
\nthe government's stake in Freeport rather than a stake of similar
\nsize held by PT Indocopper Investama, Antam said in an emailed
\nstatement.<\/p>\n
\"Currently, the acquisition of the government's stake appears
\nmore feasible than acquiring both stakes,\" the firm said in the
\nstatement.<\/p>\n
The due diligence process will provide a more detailed
\nassessment of the share-transfer plan, which could possibly be
\ndone through a cashless transaction, where the government
\ntransfers its shares in Freeport in exchange for newly issued
\nAntam shares.<\/p>\n
\"(This scheme) is still at a very preliminary stage and
\npending minority shareholder approval,\" the company said in the
\nstatement.<\/p>\n
Antam's president Dedi Aditya Sumanagara previously said that
\nit would be better for the company to buy Indocopper's and the
\ngovernment's shares, or 18.72 percent in total.<\/p>\n
With a state company controlling the stake, the government
\nwill have the right to place a commissioner on Freeport's board
\nand gain wider supervision of its activities. It will also get a
\nbigger share of the profits.<\/p>\n
But the provincial administration of Papua, where Freeport
\noperates its giant gold mine, has also shown an interest in
\nacquiring the stake owned by Indocopper, which is a subsidiary of
\nFreeport.<\/p>\n
The local unit of U.S. gold giant PT Freeport is obliged to
\ndivest close to 10 percent of its shares to domestic investors.
\nThe central government and the local administration will be given
\npriority.<\/p>\n
Based on market prices, economist-cum-legislator Dradjad
\nWibowo has estimated that the stake should be worth some $619
\nmillion.<\/p>\n
Prices of metals have continued to rise this year, following a
\nstrong surge in 2004. Antam booked Rp 195.6 billion (US$20.27
\nmillion) in net profit in the first quarter of 2005, a 33.18
\npercent increase from Rp 146.9 billion recorded in the same
\nperiod last year.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/antam-wants-a-piece-of-freeport-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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