Freeport Rejects Release of 51 Percent Share Scheme
Freeport Rejects Release of 51 Percent Share Scheme
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JAKARTA - Freeport McMoran sent letter to the Ministry of Finance declaring a rejection of a government proposal stating that the price of shares divested by Freeport only calculates fair value until the end of Freeport contract period in 2021.
CEO of Freeport McMoran, Richard Adkerson said it had received a letter from the government regarding divestment clause sent on September 28, 2017. Freeport McMoran rejected the proposal on government's divestment scheme in the letter.
"We have accepted the government's position regarding the divestment of September 28, 2017. We strongly disagree with the statements included in document and we send a response and clarify the inaccuracies in the government's position before announcing the framework on those four points," Adkerson said in a letter cited SINDONews in Jakarta on Friday (29/9).
According to him, Freeport has been responsive to the government's aspirations to own 51 percent of the shares. However, he wants the divestment value reflect the fair value of the business until 2041.
"There is an important discussion on four points between EMR Minister, Finance Minister and FCX CEO, Freeport has worked to be responsive to the government's aspirations for 51 percent ownership, but it is consistently clear that the divestment depends on transactions that reflect the fair value of the business until 2041 and Freeport maintains management and governance control," he added.
Richard said, Freeport agreed to divest 51 percent of shares based on the rules set by the government. However, he wants the divestment to be done by issuing an Initial Public Offering (IPO).
"No current divestment obligations under the PT FI Work Contract in Article 24 indicates that if after the signing of this agreement then effective legislation and regulations or government policies or actions do not incriminate the terms of the divestment mentioned here, such as less burdensome divestment requirements apply to the parties in this case the agreement," he said.
CEO of Freeport McMoran, Richard Adkerson said it had received a letter from the government regarding divestment clause sent on September 28, 2017. Freeport McMoran rejected the proposal on government's divestment scheme in the letter.
"We have accepted the government's position regarding the divestment of September 28, 2017. We strongly disagree with the statements included in document and we send a response and clarify the inaccuracies in the government's position before announcing the framework on those four points," Adkerson said in a letter cited SINDONews in Jakarta on Friday (29/9).
According to him, Freeport has been responsive to the government's aspirations to own 51 percent of the shares. However, he wants the divestment value reflect the fair value of the business until 2041.
"There is an important discussion on four points between EMR Minister, Finance Minister and FCX CEO, Freeport has worked to be responsive to the government's aspirations for 51 percent ownership, but it is consistently clear that the divestment depends on transactions that reflect the fair value of the business until 2041 and Freeport maintains management and governance control," he added.
Richard said, Freeport agreed to divest 51 percent of shares based on the rules set by the government. However, he wants the divestment to be done by issuing an Initial Public Offering (IPO).
"No current divestment obligations under the PT FI Work Contract in Article 24 indicates that if after the signing of this agreement then effective legislation and regulations or government policies or actions do not incriminate the terms of the divestment mentioned here, such as less burdensome divestment requirements apply to the parties in this case the agreement," he said.
(rnz)
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