11 Banks to Help Inalum Take 51% Freeport Stake

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  • Freeport McMoRan Chief Executive Officer Richard Adkerson (L), smiles during a press conference as Indonesia's Energy and Mineral Resources Minister Ignasius Jonan (C) and Indonesia's Finance Minister Sri Mulyani Indrawati look on in Jakarta, Indonesia, July 12, 2018. REUTERS/Darren Whiteside

    Freeport McMoRan Chief Executive Officer Richard Adkerson (L), smiles during a press conference as Indonesia's Energy and Mineral Resources Minister Ignasius Jonan (C) and Indonesia's Finance Minister Sri Mulyani Indrawati look on in Jakarta, Indonesia, July 12, 2018. REUTERS/Darren Whiteside

    TEMPO.CO, Jakarta - At least 11 banks are said to be ready to fund the takeover of Freeport Indonesia's (PTFI) shares by 51 percent. Indonesia Asahan Aluminium (Inalum) president director Budi Gunawan Sadikin said these banks were ready to help Inalum buy the shares.

    Met in Jakarta on Thursday, July 12, after the signing of a Heads of Agreement for the share divestment between Inalum and PTFI's parent company Freeport-McMoran Inc. (FCX), Budi declined to say which banks he meant.

    Inalum will spend US$3.85bn to obtain 51 percent ownership in Freeport Indonesia, representing the Indonesian government to be the majority shareholder. 

    Read: Govt Set to Sue Freeport Indonesia for Environmental Woes

    SOE Minister Rini Soemarno said Inalum would take over the interest from Rio Tinto and 100 percent from Indocopper.

    "Added to the government's owned shares, the total stake would be 51.38 percent. The total value with the interest-takeover from Rio Tinto and Indocopper is US$3.85 billion," the minister said.

    Inalum's 51 percent ownership in Freeport Indonesia will be actualized over the next discussion. Right now, nothing has materialized yet as only a head of agreement has been signed to "lock prices". 

    MUHAMMAD HENDARTYO