Antam’s rights issue will come first than divestment of govt shares

Publicly listed gold and nickel miner PT Aneka Tambang (Antam) has received approval from the government to issue new shares to raise cash, while the planned sale of the government's 14 percent stake in the company will be implemented after the rights issue, the Bisnis Indonesia newspaper reported in its Thursday edition.

Deputy of the Office of State Minister of State Enterprises

Roes Aryawidjaya said the government has already prepared the plan to sell the 14 percent stake.

The government owns a 65 percent stake in Antam.

“Antam’s rights issue will be done first and followed by placement (of the government shares)" he said.

The rights issue, which could raise US$31 million, is intended to finance the development of alumina processing plant in Tayan, West Kalimantan, which could cost Antam $220 million

Antam said the Tayan plant, which will have an annual production capacity of 300,000 metric tons of alumina a year, hasn't yet entered the production phase. The company said it is still waiting to get financing for the project before it can run the plant.

Aneka Tambang is one of several state-controled companies that the government plans to divest in the first half of the year to narrow its budget deficit. (*)