Minister signs deed for transfer of shares in mining firms to holding company

State Minister of State Owned Enterprises Rini M. Soemarno signed on Monday deed for the transfer of the government?s B series shares in three state-controlled mining firms including PT Aneka Tambang Tbk (Antam), PT Timah Tbk, and PT Bukit Asam Tbk (PTBA) to state-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum) as part of its plan to set up a mining holding company, Bisnis Indonesia reported on Tuesday.

This was confirmed by Deputy Minister for Mining at the state ministry, Fajar Harry Sampurno.

The signing of the deed was made as Antam, PTBA, and Timah, which all are listed firms, are scheduled to each hold shareholders meeting on Wednesday (November 29) to seek approval for the transfer of the shares to Inalum.

The transfer of the government?s B series 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 for Antam, PTBA and Timah.

The ministry said previously in a 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 government will also maintain the A series shares in the three companies, allowing it to maintain control over the firms.

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. (*)