Wednesday, June 9, 2010

Luhut Panjaitan plans to acquire Inalum

PT Toba Sejahtera, through a consortium of several regional governments, is ready to acquire a 58.12% stake in PT Inalum, an aluminum smelter owned by Nippon Aluminium Co Ltd. In the acquisition plan, Toba gets financing support from BNP Paribas.
President Commissioner of Toba Sejahtera Luhut Binsar Pandjaitan, who is also the owner of the business group, estimated the transaction would be completed in January next year. In addition to prepare acquisition fund, Toba Sejahtera is also allocating funds for Inalum expansion.
"We will bolster production from 225,000 tons to 400,000 tons," he told yesterday.
He said he could not expose the amount of loan that the Toba Sejahtera consortium gained from BNP Paribas. "We are still waiting for the fixed amount of fund. What is certain, BNP Paribas has signed a letter of intent with us on the financing of Inalum's acquisition."
Luhut explained the interest of loan from BNP Paribas would refer to London inter bank offered rate (Libor) plus premium. "We have several times gained financing from BNP Paribas. We have reached an agreement on financing support from BNP Paribas."
Toba Sejahtera is a private company with interests in power plan and coal.
Concerning the consortium, he exposed that the Province Government of South Sumatra and ten regency or city governments had signed a MoU with Toba Sejahtera to establish a consortium to operate Inalum.
The signing of the MoU was made at the office of the North Sumatra Governor in Medan last month, witnessed directly by North Sumatra Governor Syamsul Arifin and Toba Samosir Regent Monang Sitorus, North Tapanuli Regent Torang Lumbantobing, and Tanah Karo Regent DD Sinulingga. Seven other regions are the Regencies of Samosir, Humbang Hasundutan, Dairi, Simalungun, Asahan, Batubara, and the City of Tanjung Balai.
Inalum's shareholders currently are owned by the government (41.88%) and Nippon Aluminium Co (58.13%). Nippon Aluminium is a consortium consisting of 12 companes, namely Sumitomo Chemical Company Ltd, Sumitomo Shoji Kaisha Ltd, Nippon Light Metal Company Ltd, C. Itoh & Co. Ltd, Nissho Iwai Co. Ltd., Nichimen Co. Ltd., Showa Denko K.K., Marubeni Corporation, Mitsubishi Chemical Industries Ltd, Mitsubishi Corporation, Mitsui Aluminium Company Ltd, and Mitsui & Co.

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