Latinusa offers 20% shares

PT Pelat Timah Nusantara (Latinusa), a subsidiary of state-owned steel giant PT Krakatau Steel, is offering 20% of its issued shares to public investors. The IPO will be followed with divestment of Krakatau's majority shareholding to Japanese companies. 

According to Latinusa's prospectus published this morning, Krakatau Steel, which currently controls 93.87% shares in Latinusa, will offload 55% shares to a consortium of Nippon Steel Corporation, Nippon Steel Trading Co Ltd, Mitsui & Co Ltd, and Metal One Corporation. That means, Krakatau will retain 20% shareholding in Latinusa after the IPO, while PT Baruna Inti Lestari will have 4%.

According to the sale and purchase agreement (SPA) dated November 11, the Nippon Steel-led consortium agreed to pay US$59.95 million for 55% shares in Latinusa, valuing the company at US$108 million. Using the current rate, the Japanese consortium pays Rp383 per share. If the 20% shares offered to public use the same price, Latinusa could generate Rp193 billion from the IPO.

State-owned investment bank Bahana Securities is the underwriter of the IPO with scheduled listing on Indonesia Stock Exchange (IDX) in December 14, 2009.

Latinusa is the biggest tinplate producer in Indonesia with sales volume of 111,400 tons last year or 57.5% market share. Latinusa reported net sales revenue of Rp1.467 trillion last year and net profit of Rp72.7 billion.

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