KS Finally to be Publicly Listed

State Minister for State-owned Enterprises Sofyan A. Djalil finally decides to privatize PT Krakatau Steel (KS) through IPO (initial public offering) by the end of September 2008 to raise IDR2.05 trillion in fresh funds.
Despite the planned IPO, the option to privatize KS through a strategic sale scheme is also still open to investors interested in buying the state-owned steel maker.
Sofyan hinted only 5% shares of KS that would be put to offer if the market situation was not favorable. However, he continued, the government would prepare to offer additional shares up to 40%.
"We challenge the management of KS to immediately prepare the IPO plan, so it can be realized by September this year. We also ask the House to immediately give approval to the privatizations of KS and other state-owned enterprises. Until the mid-year, 36 state-owned enterprises have yet got approval to dispose their shares," Sofyan said.
Alexander Rusli, an advisory staff to the State Minister for State-owned Enterprises and also a commissioner of KS, disclosed four investors interested in KS-namely Pohang Steel & Co (Posco, South Korea), Blue Scope Australia, ArcelorMittal, and Tata Steel-had been notified about the government's decision to conduct the IPO.
"We will still open opportunities for strategic investors to come in. Regarding the volume of shares to be offered to the strategic investors, we are still reviewing that."
According to him, of several parties interested, it was Blue Scope that had the latest steel processing technology. "As far as I know, the one with the latest steel technology is Blue Scope."
General Manager for Corporate Communication of ArcelorMittal Haroon Hassan told Bisnis that the company was still interested in acquiring stakes in KS.
"We are sticking to the three plans that ArcelorMittal has offered to the Indonesian government. We believe we can establish strategic partnership with KS to create profits for the steel company."
At the moment, inserted Haroon, ArcelorMittal was waiting for a formal response from the Indonesian government to the bid made by the world-class steel company.