Freeport to fully acquire Indocopper

The publicly-listed mining company PT Indocopper Investama will become a private-owned company once U.S. gold mining giant Freeport-McMoRan Copper & Gold purchase the remaining 0.52 percent shares it doesn?t own from the public.

The Kontan weekly said in its latest edition that Freeport was offering a premium price of Rp 313,472.99 per share, or 465 percent above the market price of around Rp 55,450 per share.

Indocopper?s minority shareholders had approved Freeport?s intention at a June 19 extraordinary shareholders meeting.

Freeport currently controls 99.48 percent of Indocopper?s shares.

According to Kontan, Freeport wants to fully purchase Indocopper?s shares to avoid the possibility the government of Indonesia seize its lucrative gold operation here PT Freeport Indonesia.

Indocopper owns a 9.36 percent stake in Freeport Indonesia. Indocopper was partly owned by businessman Bob Hasan, who owes big to the Indonesian Bank Restructuring Agency (IBRA). The agency could seize Bob?s shares in Freeport Indonesia as part of efforts to collect the government?s money.

But Freeport Indonesia told the paper that the Indocopper purchase was part of a deal with Bob to repay his debts to foreign banks. Freeport guaranteed the loans made in 1997, which is maturing this year.(*)