Bakrie denies selling stake in PT Indocopper<\/p>\n
JAKARTA (JP): The chairman of the Bakrie Group, Aburizal
\nBakrie, has denied rumors that the Group's stake in PT Indocopper
\nInvestama Corporation (IIC) is to be acquired by tycoon Mohamad
\n\"Bob\" Hasan.<\/p>\n
Aburizal said that if the Group decided to sell its shares in
\nIIC -- a 9.36-percent stake holder in PT Freeport Indonesia -- it
\ncould be acquired by anyone and was not limited to Bob Hasan's PT
\nNusantara Ampera Bakti (Nusamba).<\/p>\n
\"Up to now, I have not received word (on the sale) and the
\nGroup's board of directors has not yet met to discuss this,\" he
\nsaid.<\/p>\n
He said that if the board of directors decided to sell the
\nGroup's stake in Freeport, he would give everyone an equal
\nopportunity to buy.<\/p>\n
\"We will sell our stake if the price is right,\" he said.<\/p>\n
Last week Aburizal denied that the Bakrie Group, through its
\ntwo subsidiaries, PT Bakrie & Brothers and PT Bakrie Investindo,
\nwas planning to sell its stake in IIC.<\/p>\n
He acknowledged, however, that such a move had been proposed
\nby the Group's financial and investment advisors, Salomon
\nBrothers and Forest International.<\/p>\n
The Indonesian government and IIC each hold only a 9.36
\npercent in Freeport Indonesia because they did not increase their
\nequity capital when Freeport-McMoRan recently increased its share
\ncapital and issued new shares. They had previously both had a 10-
\npercent holding.<\/p>\n
In December 1992, Freeport-McMoRan bought 49 percent of IIC's
\nshares. As a result, IIC's share composition became: 49 percent
\nowned by Bakrie & Brothers; 2 percent by Bakrie Investindo; and
\n49 percent by Freeport McMoRan.<\/p>\n
Aburizal said that if his company decided to sell its stake in
\nFreeport Indonesia, it would merely be a business strategy which
\nhad \"nothing to do with politics or external pressure\".<\/p>\n
Rumors that the Bakrie Group was selling its shares in
\nFreeport Indonesia started earlier this month. Timber tycoon Bob
\nHasan, through Nusamba was said to be the most likely person to
\nbuy the shares.<\/p>\n
According to the Kontan weekly, Nusamba's shares are owned 10
\npercent by Bob Hasan, who is also the company's president
\ncommissioner; 10 percent by businessman Sigit Hardjojudanto, who
\nis also President Soeharto's eldest son; and the remaining 80
\npercent by the Supersemar, Dakap and Dharmais social foundations,
\nall of which are chaired by President Soeharto.<\/p>\n
Despite Aburizal's denials, Bob Hasan was quoted by the Bisnis
\nIndonesia daily that negotiations were going on between Nusamba
\nand IIC.<\/p>\n
But he refused to mention the stake that his company was
\nseeking in IIC.<\/p>\n
Reports also said that Bob Hasan, through his 50-percent
\nownership in PT Askatindo Mineral Karya, was likely to have a
\nstake in the disputed Busang gold mine.<\/p>\n
Askatindo Mineral, owned by a businessman named Sjakareni, was
\na partner of Canadian company Bre-X when the latter carried out
\nexplorations at the mine.<\/p>\n
Bre-X, which has been exploring gold deposits in Busang for
\nyears, has estimated that Busang has 57 million ounces of gold
\nreserves.<\/p>\n
The government has confirmed that Bre-X and Barrick Gold
\nCorp., another Canadian mining firm, had agreed on a 22.5
\npercent--67.5 percent split of the Busang gold ventures. The
\nremaining 10-percent stake would be given to the Indonesian
\ngovernment.<\/p>\n
The Busang gold project sparked controversy last year after
\nBre-X teamed up with Sigit Hardjojudanto and Barrick with Sigit's
\nsister, Siti Hardijanti Rukmana, to speed up approval to develop
\nthe mine.<\/p>\n
According to latest developments, however, the government has
\nagreed to allow more local participation in the gold mine.<\/p>\n
Another Canadian mining firm, Placer Dome, had also offered to
\nmerge with Bre-X and proposed to give Indonesia 40-percent
\nownership.<\/p>\n
Bob was quoted by Bisnis Indonesia as saying that negotiations
\non the Busang project were underway. Although he refused to
\nmention the stake Nusamba was seeking, analysts estimated that
\nNusamba is eying a 25 percent share.<\/p>\n
This means that Nusamba would require some $1.4 billion to buy
\nthe shares. (pwn)<\/p>",
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