Minister: Government to respond to Freeport?s shares offer after price deal

By Thomas R. Sembiring

Minister of Energy and Mineral Resources Sudirman Said stated that the government would respond to the PT Freeport Indonesia?s shares offer within 60 days after both sides have reached agreement on the price of the shares.

Speaking during a hearing session with the House of Representatives Commission VII on energy and mining on Monday, Sudirman clarified earlier reports suggesting that the government would make its response within 60 days after PT Freeport announced the price of the 10.64 percent shares the company will divest this year.

?The ministry will respond in 60 days after there has been a price agreement,? he said.

PT Freeport on January 14 offered the 10.64 percent shares in the company at a price of US$1.7 billion, which some officials and lawmaker said are too expensive.

The government will set up a team comprising of officials from the Ministry of Energy and Mineral Resources, Ministry of Finance, and the Office of the Minister of State Owned Enterprises to evaluate the PT Freeport share price offer, with the help of an independent accountant to be appointed by the government.

Earlier reports said that the government will respond to the offer within 60 days after PT Freeport officially made shares offer to meet its mandatory divestment obligation.

Some officials have indicated that the government, which has the first priority to buy the PT Freeport shares, is unlikely to exercise it, and would probably let a group of state-owned enterprises to acquire it.

Editing by Reiner Simanjuntak