Govt mulls to sell 10-14 percent stake in Timah through secondary offering
Wednesday, December 17 2003 - 03:34 AM WIB
With the improvement in global tin prices, the office of the state minister for state enterprises thinks that the year 2004 will be the right time to sell its stake in Timah.
?We have planned Timah?s secondary offering for 2004 after studying (all factors),? Aloysius Kiik Ro, an official in charge of restructurization and privatization of agro industry businesses, strategic industries and mining at the office of state minister for state enterprises, said in Jakarta on Tuesday.
The study, according to Aloysius, was included the aspects like composition and type of shares to be sold.
?Whether it will be new shares or old shares, all are still under consideration, including the total of number of shares (to be sold),? he said.
Meanwhile, Timah?s company secretary Prasetyo Laksono said that Timah?s management has not received any information about secondary offering so far.
?It may be still under consideration of the office of state minister for state enterprises. If secondary offering planned for next year, Timah?s board of directors will be informed,? Prasetyo said.
Some time ago, government planned Timah?s secondary offering, but it was postponed due to weak global tin prices.
Timah had said its net profit may soar sevenfold this year to Rp80 billion from Rp11.28 billion last year on higher tin prices and sales.
According to Timah, tin prices were last week trading at US$5,810 per ton, up from $3,620 per ton, its lowest level this year, in February.
The company also plans to build a new smelter next year to help boost production.
"The new smelter will only have a capacity of between 6,000 metric tons and 7,000 tons per year," Prasetyo said.
Timah currently operates a major tin smelter on Bangka Island with production capacity of 47,000 metric tons per year.
Timah's tin production next year is expected to be around 42,000 tons, barely unchanged from this year's target, Prasetyo said. (*)