Mining firms to hold shareholders meeting over planned holding company

Three state-controlled mining firms, which are listed on the Indonesia Stock Exchange, are scheduled to each hold extraordinary shareholders? meeting on November 29 to seek approval for the transfer of the government?s shares to state-owned aluminum maker PT Indonesia Asahan Aluminium (Inalum).

The transfer of the government?s shares in the three companies to Inalum forms part of steps as the government moves to realize its plan to create a holding company of state-controlled mining firms. The government has appointed Inalum, which is 100 percent owned by the state, to be the holding company of three state-controlled mining firms including coal giant PT Bukit Asam Tbk, tin giant PT Timah Tbh, and mining firm PT Aneka Tambang Tbk (Antam).

?The main agenda of the shareholders meeting is to seek shareholders? approval over the change in share ownership to PT Inalum which is 100 percent owned by the state,? The Office of the State Minister of State Owned Enterprises said in a statement Wednesday.

The statement said that despite the change in the majority ownership of the three publicly-listed firms, they are not required to make a tender offer because there will be no change in the controlling shareholder as Inalum is 100 percent owned by the state.

The statement, however, did not say when the holding company will be finally realized. The creation of the holding company is expected to among others create a state mining firm with huge assets, enabling it to raise greater funds to acquire coal and mineral reserves including acquiring shares to be divested by gold and copper giant PT Freeport Indonesia.

Editing by Reiner Simanjuntak