"Shareholders (the Ministry of State-Owned Enterprises (SOEs)) have commissioned us. So, we are ready. Now, we are conducting in-depth studies on the purchase of Freeport`s divestment shares," Inalum Finance Director Oggy A. Kosasih said.
Jakarta (ANTARA News) - PT Inalum is ready to take over 10.64 percent divestment shares of PT Freeport Indonesia in line with its ability to secure a loan (leverage ratio) of approximately US$ one billion, the companys official stated.

"Shareholders (the Ministry of State-Owned Enterprises (SOEs)) have commissioned us. So, we are ready. Now, we are conducting in-depth studies on the purchase of Freeports divestment shares," Inalum Finance Director Oggy A. Kosasih stated here on Wednesday.

According to Oggy, the companys strong financial capacity due to its current zero-debt position, gives it the power to invite financial institutions and banks to fund the purchase.

Besides this, Inalum currently has approximately US$400 million cash in hand, while its total assets are valued at US$1.1 billion.

However, Oggy did not provide further details on the composition of internal funding with bank loans.

Oggy said the company is appointing a financial advisor to calculate the value of Freeports shares.

Meanwhile, SOE Minister Rini Soemarno revealed that she had already appointed PT Bahana Securities (Persero) to conduct a study on the planned takeover of 10.64 percent divested stake in PT Freeport Indonesia.

According to Soemarno, the study for evaluating the possibilities has provided an opportunity to get financing from international financial institutions on underwriting 9.36 percent of Freeports shares that are already owned by the government.

The SOE ministry is ready to increase its stake in Freeport Indonesia due to its financial and banking capabilities.

According to Government Regulation (PP) No. 77 of 2014 on the third amendment to PP No. 23 of 2010 on the implementation of the Mineral and Coal Mining Business, mandates Freeport to divest more than 10.64 percent of its shares no later than October 14, 2015.

Furthermore, another 10 percent will be divested in October 2019, while this time the new government has a 9.36 percent stake in Freeport.

"We see that Inalum needs to enter as the company so far does not have a mine. Hence, it is expected to effectively become a shareholder in Freeport," Soemarno affirmed.

To further simplify the terms of financing, Inalum and Antam will be synergized with the full support of SOE banks, such as Bank Mandiri, BRI, and BNI.

"Inalum has a very strong financial position, while Freeport has a strategic value. Hence, the banks would want to finance them. Not only domestic banks but also international financial institutions are definitely interested to finance the purchase," Soemarno pointed out.(*)

Editor: Heru Purwanto
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