Freeport to Issue New shares for Divestment Requirements
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Kamis, 1 Januari 1970 07:00 WIB
TEMPO.CO, Jakarta - Teguh Pamudji, secretary of the Energy and Mineral Resources Ministry, said that giant mining company Freeport is set to issue new stocks in the process of complying with the government’s divestment rule.
A majority of Freeport’s divested stocks will be acquired by the Indonesian government.
Read: Freeport Contract Extension yet to be Decided: Official
“New stocks will be issued in purchasing Freeport’s stocks. So it doesn’t refer to Freeport’s existing stock,” said Teguh Pamudji today.
According to Teguh, the government currently owns 9.36 percent of Freeport’s shares. In order to own 51 percent of the company’s shares, the government needs to acquire 41 percent of Freeport’s shares.
Read: Freeport Wants Assurance of Investment Stability
Teguh revealed that 41 percent of the shares will be acquired by a state-owned company that will be appointed by an independent valuator. The independent valuator, according to Teguh, will be assigned to calculate Freeport’s share value based on the company’s market value.
The government expects the negotiation with Freeport will be finalized before the end of October.
DIKO OKTARA
