ANTAM pulls out of Newmont divestment

West Nusa Tenggara (NTB) governor Zainul Majdi said state-owned mining company PT Aneka Tambang (ANTM) Tbk has pulled out from its participation in acquiring PT Newmont Nusa Tenggara (NNT) shares. 

Majdi said he met ANTM management this morning, where ANTM insisted on getting at least 50% of the 31% shares to be divested, pretty much similar with the statement of SOEs minister Mustafa Abubakar yesterday. But looks like local administrations managed to mount pressures in the past few hours. "Antam decided to drop the plan to participate in the acquisition of 14% shares scheduled for divestment in 2008 and 2009. As a result, all the shares will be purchased by local administration," Majdi claimed.

Yesterday, SOEs minister assigned ANTM to represent central government in the acquisition of 31% shares pursuant to a cabinet decision. Local administration has engaged with PT Multicapital, a JV between Bakrie, Bumi Resources, and Recapital Advisors, as exclusive partner in the acquisition of 10% shares scheduled for divestment in 2006 and 2007. The total consideration for shares to be divested in 2006-2009 is about US$890 million, while the remaining 7% is scheduled for divestment next year at undecided price.

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