PIP, Nusa Tenggara extend effective date for Newmont stake purchase

Government investment arm Pusat Investasi Pemerintah (PIP) and Nusa Tenggara Partnership B.V. has signed an amendment of the sale purchase agreement for the divested 7 percent shares of PT Newmont Nusa Tenggara (NNT).

The amendment of the agreement was signed on November 3, 2011 by the head of PIP Soritaon Siregar, while Blake Rhodes and Toru Tokuhisa represented Nusa Tenggara Partnership B.V.

The amendment of the stake purchase was made as the government?s purchase of the NNT shares through PIP has yet to be effective, amid absence of approval from the Directorate General for Mineral and Coal at the energy ministry and National Investment Coordinating Board (BKPM).

The two partners agreed to extend the effective date of the stake purchase to May 6, 2012 in order to give opportunities for the two sides to meet requirements.

PIP said in a statement that the amendment of the sale purchase agreement shows the commitment of PIP and NTP to finalize the 7-percent stake purchase transaction. Both parties agreed that if until May 6, prerequisites have yet to be made, both have an opportunity to extend the deadline.

PIP on the other hand reiterated that the decision to purchase the Newmont shares have met applicable laws.

Nusa Tenggara Partnership B.V. (NTPBV), which holds Newmont's shares in PTNNT and Sumitomo Corporation of Japan, entered into the agreement with PIP on May 6, 2011 for the sale and purchase of the final 7 percent divestiture stake in PTNNT, as required under the terms of PTNNT's Contract of Work with the Indonesian government.

The Indonesian government designated PIP as the buyer for the final 7 percent interest by exercising a right of first refusal set out in the Contract of Work. Upon closing of the transaction, NTPBV's interest in PTNNT will be reduced to 49%, as required under the Contract of Work. The price agreed for the 7 percent stake is approximately US$246.8 million. (godang/giok)