Nalco in talks to buy Inalum
Wednesday, July 18 2012 - 08:52 AM WIB
Sources privy to the development said the licence of the Japanese consortium to run the firm is coming to an end next year and the Indonesian government has invited the Indian flagship firm for discussions.
Nalco has made a detailed presentation to a committee of the Indonesian Cabinet elaborating its plans to take Inalum further. It expressed intention of both running Inalum and acquiring any stake or both.
A Japanese consortium holds 59 percent stake in Inalum, which owns a 2.1 lakh ton capacity aluminium plant in North Sumatra province while the rest is with the Indonesian government.
Inalum was set up in 1976 as a joint venture between the Indonesia Government and Nippon Asahan Aluminium, a consortium between 12 Japanese companies and government.
Initially, the shareholding ratio between the Indonesian Government and NAA was 10 percent and 90 percent respectively.
In October 1978, the ratio changed to 25 percent and 75 percent and since June 1987 it has been 41.13 percent and 58.87 percent. The share composition then changed to 41.12 percent for the Indonesia Government and 58.12 percent for NAA in February, 1998.
Indonesia?s contract with NAA was to run the company for 20 years, which is ending next year prompting Jakarta to scout for firms which can take care of its future.
Sources said this does not mean that doors have been shut on NAA. The Indonesian government is in touch with Nalco as well as with the Japanese firm.
No decision has been taken yet, they said.
When contacted the Nalco Chairman, B.L. Bagra, said, ?We have expressed our interest also to take over Inalum. We have shown interest to get associated with it. Once the contract with the Japanese ends, whether the Indonesian Government will offer us a part of equity or full equity or it will give to Japanese only, we don?t know. We are yet to hear from them.?(*)