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Jakarta Post

Team formed to assess Freeport'€™s share offering

Freeport has announced the offering price of its 10

Anton Hermansyah (The Jakarta Post)
Wed, January 20, 2016

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Team formed to assess Freeport'€™s share offering Freeport has announced the offering price of its 10.46 percent stakes to Indonesia government at US$1.7 billion. State-Owned Enterprises (SOE) Minister Rini Soemarno said on Tuesday that the shares were overpriced. (Kompas/Iwan Santosa) (SOE) Minister Rini Soemarno said on Tuesday that the shares were overpriced. (Kompas/Iwan Santosa)

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span class="inline inline-center">Freeport has announced the offering price of its 10.46 percent stakes to Indonesia government at US$1.7 billion. State-Owned Enterprises (SOE) Minister Rini Soemarno said on Tuesday that the shares were overpriced. (Kompas/Iwan Santosa)

The government will create a special team to assess the fair value of Freeport Indonesia'€™s shares after State-Owned Enterprises Minister Rini Suwandi and some observers criticized the company's asking price as being too expensive for the government.

The Energy and Natural Resources Ministry said the team will include representatives of the directorate general of taxation, the budget office, the internal auditing agency (BPKP) and the Office of the Coordinating Maritime Affairs Minister.

"We have sent the letter to them and summoned representatives from them. The first meeting will be held next week," said Muhammad Hidayat, the Energy and Natural Resources Ministry'€™s director of mineral business development on Jan. 20 in Jakarta.

Apart from deploying the team to assess the '€œoverpriced shares'€, Hidayat said that the government has also asked for an independent appraisal of the asking price.

Earlier, Freeport said the total value of all of the company'€™s shares was US$16.2 billion. However, the company did not elaborate on the volume of the shares that will be sold to the government.

Under current regulations, Freeport is obliged to sell 30 percent of its stakes to either the government or to private Indonesian companies. The government already owns a 9.36 percent stake in Freeport, leaving 20.64 percent left to buy, of which 10.64 percent is to be sold this year. (ags)(+)

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