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