Antam appoints HSBC as investment advisor to acquire Freeport stake
Tuesday, August 23 2005 - 02:39 AM WIB
HSBC was selected from 5 short listed candidates.
The financial advisor will complete a due diligence on the potential acquisition of a minority stake in PT Freeport Indonesia, make a recommendation whether or not to proceed with the acquisition based upon value created for Antam and if a positive recommendation, how best to finance the acquisition. The financial advisor, after appointing other independent advisors, will manage and conduct a thorough financial, legal, technical and commercial evaluation of the potential acquisition.
PTFI, which operates massive copper and gold mining complex in Papua is a subsidiary of NYSE-listed mining giant Freeport McMoRan Copper& Gold.
In order to ensure objective advice, the appointed financial advisor may not become, nor will have any links to the financial arranger. If upon evaluation Antam needs to raise funds, a financial arranger will be appointed.
Antam said it is prioritizing the 9.36% stake of PT FI owned by the government of the Republic of Indonesia rather than the 9.36% stake held by PT Indocopper Investama, although both options will be considered as part of the financial due diligence.
"Antam?s management is initially attracted to the idea of making the acquisition of the stake in PT FI as it may allow Antam to increase support for Antam?s existing project pipeline and could result in a healthy dividend. The costs and benefits, the size of the investment, the financing, and other key issues will all be considered as part of the full evaluation," the company said.
For the acquisition of the government?s stake in PT FI, to avoid a conflict of interest, Antam must receive minority shareholders? approval, as the majority shareholder, the government of the Republic of Indonesia, is not allowed to vote in Antam?s acquisition of one of its assets.(alex)