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SOEs may use bank loans to buy Freeport shares
Dig deeper: Freeport has announced the offering price of its 10
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span class="inline inline-center">Dig deeper: 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)
State-Owned Enterprises (SOE) are on guard to raise funds to buy the 10.64 percent shares to be sold by PT Freeport Indonesia, while awaiting the results of a price assessment conducted by the government.
If the government decided not to accept Freeport's offering, state-owned firms were ready to do so, said Fajar Harry Sampurno, the State-Owned Enterprises Minister's assistant for mining, strategic industries and media.
"Once the result of the valuation comes, we will determine the takeover scheme. The funding could come from bank loans," he said in Jakarta on Friday.
Fajar added that four SOEs had shown interest in buying Freeport's shares, namely metal mining company PT Aneka Tambang, coal miner PT Bukit Asam, alumina miner PT Indonesia Asahan Alumunium (Inalum) and tin miner PT Timah.
He said the price of US$1.7 billion for the stake offered by the copper and gold mining giant in Papua was too high. Therefore, the SOEs would have to wait for the appraisal team on the fair price of Freeport's shares.
"We have to follow the regulations in accordance with the government's regulations on coal and mineral mining operations," Fajar explained.
Earlier, State-Owned Enterprises Minister Rini Soemarno sent a letter to Energy and Mineral Resources Minister Sudirman Said, stating SOEs inclination to buy the Freeport stake.
The subsidiary of US-based Freeport McMoran had submitted the offering to the government on Jan. 13. The government has 60 days to decide whether to purchase the shares, or hand the offer over to SOEs or local governments. (ags)
