Antam, SDK sign share purchase agreement deed
Saturday, December 29 2018 - 01:15 AM WIB
State-controlled mining firm PT Aneka Tambang Tbk (Antam) announced Friday it has signed the Share Purchase Agreement (SPA) deed as a final phase of the purchase of Showa Denko K.K.?s (SDK) 20 percent shares in PT Indonesia Chemical Alumina (PT ICA), which operates the Tayan chemical grade alumina (CGA) plant in West Kalimantan.
The SPA signing ceremony was held on December 28, 2018 in Jakarta. Antam said that with the signing of the SPA, the company has officially increased its ownership in PT ICA to 100 percent from 80 percent previously.
Antam?s Finance Director, Dimas Wikan Pramudhito said: ?We are pleased to be able to resolve the entire stage of the sale purchase agreement process of PT ICA shares as a part of comprehensive negotiation and evaluation process which was conducted by Antam and SDK toward the restructuring of the joint venture arrangement in PT ICA. This effort are in line with Antam?s solid commitment on development of company? sportfolio in alumina downstream business. Through a 100 percent ownership in PT ICA, Antam is committed on the optimizing of chemical grade alumina plant in order to produce high quality chemical grade alumina (CGA) product.?
Through the signing of SPA, both Antam and SDK have completed the obligation as shareholders of PT ICA in accordance with the proportion of share ownership which was stated on the Conditional Share Purchase Agreement (CSPA) that was signed on May 29, 2018.
The main points of agreement which are stated in the CSPA are the repayment of loan to lenders, tax obligation, environmental management, plant refurbishment, and license transferring from SDK to PT ICA in relation of production processes and products which have been registered in 36 countries. The sale and purchase of the transaction of SDK?s shares in PT ICA to Antam at the agreed upon purchase value in the agreement amounting to US$1 (one US dollar).
The Tayan CGA plant employs the Bayer process and is equipped with calcination facility to produce CGA product. CGA is used in the production of functional materials and electronic materials such as water purifier materials, refractories, abrasives, building materials, IC packaging, and materials for LCD glass. The CGA products sales destination include Japan, South Korea and Turkey.
Editing by Reiner Simanjuntak