House commission supports Timah’s divestment
Wednesday, July 7 2004 - 01:57 AM WIB
The House of Representatives Commission VIII on mining and energy is supporting the government’s divestment of 14 percent stake in state-owned tin miner PT Timah Tbk, Kompas newspaper reported in its Wednesday edition.
But the divestment of 70 million shares of Timah has yet to obtain the formal approval of another Commission IX on finance and state budget, the company’s president director Thobrani Alwi told the reporters after attending a hearing with the Commission VIII in Jakarta on Tuesday.
"The government plans to sell around 70 million shares through a secondary offering," Thobrani said.
The main purpose of the divestment is to improve the performance of the company and it will get additional money, which will help its operational activities.
Meanwhile the Dow Jones News wires reported on Tuesday that Timah expects the government to raise as much as Rp200 billion ($1=IDR8,975) from the sale of a 14% stake in the company later this year.
The recent increase in global tin and coal prices is expected to attract investors to buy the shares at a premium, he added.
He didn't provide any other details.
The government owns 65% of Timah, while the public holds the remaining stake. (*)