Release: Antam to select financial advisor next week
Smelter construction proceeding on time and on budget
Friday, August 12 2005 - 01:33 AM WIB
As previously announced, Antam will appoint an independent financial advisor that will lead other advisors to undertake a full due diligence and analysis of the potential acquisition of a minority stake in PT Freeport Indonesia.
The advisor will clarify if sufficient value is created for Antam and its shareholders and give recommendations whether or not to make an investment and how best to fund an investment. Following the due diligence and Antam?s decision to proceed with the potential investment, a financial arranger, separate from the financial advisor, will be appointed. A rights issue is one of the alternatives which may be considered. Antam will select its financial advisor by next week.
Suharno, Deputy Head of the Auction Team said, ?The Auction Team will recommend a financial advisor to the Board of Directors by the end of this week.?
Separately, Antam?s FeNi III ferronickel smelter construction is proceeding on time and on budget. Following the construction, Antam?s EPC contractor is expected to switch on the smelter at the beginning of November and after a three month commissioning, commercial operations are expected in 1Q06.
Antam may be able to switch on the smelter a few days earlier than planned, although commercial operations will definitely not commence three months earlier in November 2005. (end of release)