Govt invites 12 sales agents for Antam’s divestment
Friday, February 20 2004 - 01:58 AM WIB
The government plans to sell its stake in Antam through private placement this year.
All the 12 sales agents were asked to submit their proposals for the Antam divestment before February 25, 2004, a source told the Bisnis on Thursday.
“The 12 participants were briefed in a meeting yesterday (Thursday) on the terms of reference of the Antam’s sale at the Office of the State Minister for State Enterprises,” the source said.
According to the sources, the 12 participants who attended Thursday’s meeting were: PT Danareksa Sekuritas, PT Mandiri Sekuritas, PT Andalan Artha Advisindo Sekuritas, PT Bahana Securities, PT Nikko Securities, PT Alpha Sekuritas, PT Indopremier Securities, PT BNI Securities, PT Trimegah Securities Tbk., PT Ciptadana Sekuritas, PT Bhakti Capital and PT Makindo Secutities.
Simultaneously, Antam is embarking on a US$31 million rights issue plan in a bid to raise cash to help finance a bauxite mining project in Tayan, West Kalimantan.
The estimated US$220 million project is intended to add the value to the company's bauxite resources at the site. Currently, Antam exports bauxite largely to Japan and China.
"To conduct a rights issue, we have to get the government's approval as the controlling shareholder," Antam secretary Dohar Siregar said on Friday.
The government has a 65 percent stake in the publicly-listed Antam, while the public investors hold the remainder.
The rights issue, perhaps, one of the alternative funding for the Tayan project and it will be finished in the first quarter of 2004, Dohar said.
Deputy of the Office of the State Minister of State Enterprises Aloysius Ro confirmed that Antam has proposed to the government to issue new shares to raise funds.
“We received the suggestion regarding the issuance of $31 million new shares from the management of Antam and it was in line with the state enterprise’s privatization. But we asked the company’s directors to submit it (the proposal) in writing,” Aloysius said on Monday.
With the project, Antam plans to produce chemical grade alumina, which is used for various commercial and industrial purposes including the manufacturing of ceramics, paint, spark plugs, and toothpaste.
Dohar said that aside from the rights issue mechanism, Antam was also preparing other financing alternatives, and is working with international partners to determine the optimal financing scheme for the project.
"The company expects to come to a final decision on the financing scheme by the end of the first quarter of this year at the latest," Dohar said.
Last year, Antam enjoyed a 19 percent increase in sales on the back of both rising sale volume and higher ferronickel and nickel prices.
Sales surged to Rp 2.04 trillion (US$242 million) in 2003 from Rp 1.71 trillion in 2002, with 85 percent of the revenues obtained from exports.
The company is also in the middle of constructing its third smelter at its nickel mine in Pomalaa, South Sulawesi, to increase production to 15,000 tons from 11,000 tons per year. The new smelter is expected to commence operation in early 2006. (*)