Antam finalizes plan to divest stake in ICA
Wednesday, May 3 2017 - 06:17 AM WIB
Petromindo|Lucky
IDX-listed mining firm PT Aneka Tambang Tbk(Antam) is still in the process of finalizing a plan to divest its stake in PT Indonesia Chemical Alumina (ICA) that would allow its partner Japan?s Showa Denko KK to have greater shares, Investor Daily reported on Wednesday.
The paper quoted Antam Finance Director Dimas Wikan as saying that the company is currently evaluating the size of the stake to be divested and the value of the shares.
The paper said that Antam will be comfortable to reduce its stake in ICA from the current 80 percent to only 50 percent.
ICA, which processes bauxite ores into chemical grade alumina in Tayan, West Kalimantan, started production in 2015, and the company is seeking to ramp up output.ICA has an installed production capacity of 300,000 tons per year.
Antam first announced the plan to divest stake in ICA last year. Dimas said that total investment spent in developing ICA since 2011 was US$490 million, which will be used as the basis to determine the value of shares to be divested.
Despite its majority ownership of ICA, Antam does not have full control as the company is required to discuss with Showa Denko regarding operational actions and financial affairs. (*)