PT Krakatau Steel (KS) learned the possibility of acquiring the 20-30 percent of Grange Resources Ltd iron ore mining company shares in a bid to secure raw material supply.
KS has prepared the US$40 million of IDR372 billion to invest in the Australian-based company. KS Commissioner Alexander Rusli conceded the acquisition scheme.
"The commissioners agreed the plan. But KS boards of directors conduct the company due diligence. I do not remember the value, the portion of the shares would be 20-30 percent. We se the chances given that (Grange Resources) is public company in the Australian stock exchane," he said following the press conference with the State Enterprise Minister Sofyan A. Djalil concerning with the Indosat shares bought by Qatar Telecom a the Ministry yesterday.
Bloomberg data shows Grange stock price n the Australian Stock Exchange was down to US$1.60 per share as from US$1.65. This assumed KS required US$34.56 million fund or IDR321.44 billion.
Grange is developing two iron ore projects in Southdown West Australia and Pelletizing Plant in Kemaman Malaysia which will be operating by 2011 with 6.8 million tons capacity.
Tuesday, June 10, 2008
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