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Indonesia: Freeport Divestment Completed in Q1/ 2019
TEMPO.CO, Jakarta – State-owned Enterprise Minister Rini Soemarno said the divestment process of Freeport Indonesia’s 51 percent shares will be completed next year.
“We emphasize that the divestment process should be completed in the first quarter of 2019, as well as calculation scheme of the [shares] value,” she said on Wednesday.
According to Rini, the government is still discussing the investment certainty, especially taxes and levies. “One more thing, we have to know what the holder agreement will be like,” she said.
The calculation of Freeport’s shares value has not been completed yet. “Still in negotiations,” Rini remarked.
Energy and Mineral Resources Minister Ignatius Jonan said the value of Freeport Indonesia’s 51 percent shares that will be divested to the state is calculated based on the company’s contribution to its parent company, Freeport-McMoran.
The value of Freeport-McMoran capitalization on the New York Stock Exchange (NYSE) as per Sunday’s closing was US$20.74 billion. Meanwhile, Freeport’s contribution over the past few years accounted for 40 percent of the total value, Jonan said, which is around US$8 billion or around Rp108 trillion.
“So, 51 percent of that value equals to US$4 billion,” Jonan said last week.
Source: https://en.tempo.co/read/news/2017/10/12/056912232/Freeport-Divestment-Completed-in-Q1-2019