PIP signs deal to buy 7 percent shares in Newmont
Saturday, April 23 2011 - 03:07 AM WIB
?We will negotiate the price,? Agus said in Jakarta, Thursday.
Agus added that the funds for the purchase of the shares had been set by the Government Investment Center (PIP). PIP will use its own funds, rather than state budget, to buy Newmont shares. ?When realized, it will be between 15 percent and 17 percent of the PIP investment,? Agus said.
With the share ownership of 7 percent, the government intends to list Newmont shares on the Indonesian Stock Exchange (IDX).
Agus explained that the reason behind the government?s move to buy shares in Newmont is to tighten the supervision in Newmont. ?Illegal export from Newmont without government?s knowledge should not happen. We are able to supervise directly,? he said.
Meanwhile, Director General of State Wealth at the Ministry of Finance Hadiyanto added that PIP signed the deal on April 18, 2011.
The government is now working to get the share price below US$271 million that Newmont proposed earlier. ?we will use the remaining one month to wrap up details on transaction, including approval on transaction terms an conditions, payment method, and the government?s right as share holder,? he said.
West Sumbawa regent Zulkifli Muhadli cast doubt over government?s ability to buy 7 percent shares in Newmont, part of Newmont divestment program. Moreover, he said, the government wanted a negotiation on the price. ?The price is already final. And it cannot be negotiated. I think the transaction won?t happen,? said Zulkifli.
Zulkifli reiterated the readiness of PT Daerah Maju Bersaing (DMB, a joint venture between the local governments and the Bakrie Group to the 7 percent shares in Newmont at offered price.
He warned that if the central government realizes its plan to buy shares in Newmont, the regional government will close the mine down. (*)