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Antam-Showa Denko partnership goes into limbo
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An office of state-owned diversified miner PT Aneka Tambang (Antam). (Tempo/Dasril Roszandi)
T
he partnership of state-owned diversified mining company PT Aneka Tambang (Antam) and Japanese Showa Denko K.K. has gone into limbo as the latter wants to quit a joint venture company, PT Indonesia Chemical Alumina, while Antam wants to divest some of its shares.
The joint venture company established a chemical grade alumina (CGA) plant in Sanggau, West Kalimantan that has been in operation since 2014.
According to the Investment Coordinating Board (BKPM), the total investment for the plant reached US$352.2 million.
Read also: Showa Denko quits Antam’s partnershipAntam Finance Director Dimas Wikan Pramudhito said the company owned 80 percent of PT Indonesia Chemical Alumina shares while the rest was owned by Showa Denko.
In 2016, Antam offered some of its shares to Showa Denko but the transaction could not be materialized as some of the terms and conditions were not met.
In July, the Japanese company stated it would quit the joint venture and had written a 10 billion yen (US$90.3 million) loss in investment in their balance sheet.
"After some of terms and conditions were not met, Showa Denko decided to quit, but it had to follow the process. There must be replacement in the joint venture," Dimas explained at Indonesia Stock Exchange (IDX) on Monday.
Now Antam and Showa Denko have to find themselves a third party buyer to take over Showa Denko’s shares and buy some shares owned by Antam that would be divested.
Both companies declined to explain the details of the problem they faced. (bbn)
