印尼n state-owned steel producer PT Krakatau Steel has announced its intention to sell about 20 percent of shares in its tinplateproducing subsidiary PT Pelat Timah Nusantara (Latinusa) via an initial public offering (IPO) to be held on December 7-8 this year.
As a result of the sale of 504 million shares in Latinusa, Krakatau Steel plans to receive about IDR 159-204 billion (approx. $17-21 million). "All funds from the IPO will be used for Latinusa's reconstruction project and for the acquisition of new equipment, in order to increase the plant's efficiency and product quality, and to raise theproductioncapacity from the current level of 130,000 mt to 160,000 mt per year," Latinusa's managing director Ardhiman T.A. said, adding that the shares will be listed on the印尼Stock Exchange on December 14, 2009.
Meanwhile, on November 12 this year, with the objective of attracting the robusttinplatedemand in Asia, the Japanese steelmaker Nippon Steel Corporation formed a consortium with Mitsui & Co Ltd, Metal One Corporation and Nippon SteelTradingCo Ltd. The Nippon Steel consortium signed a share purchase agreement with Krakatau, by which the consortium will acquire 55 percent of total issued shares of Latinusa for $59.95 million, counting after the initial public offering. With Nippon Steel's 35 percent holding representing a controlling stake in the consortium, Latinusa is expected to become a consolidated subsidiary of Nippon Steel.
"Setting sights on capturing the expanding demand for tinplates in印尼by enhancing the competitiveness of Latinusa through stable supplies of substrates and technical assistance, Nippon Steel intends to strengthen itstinplatebusiness in the growing market in Asia by securing amanufacturing基地印尼, in addition to theproductionbases located inJapanand two Nippon Steel Group companies overseas, namelyChina-based Guangzhou PacificTinplate(PATIN) andThailand-base SiamTinplate(STP)," reads Nippon Steel's statement.
After the IPO and stake purchase, Krakatau Steel will own a 20.10 percent stake in Latinusa. Meanwhile, Nippon Steel Corp. will own 35 percent, Mitsui Co. will own ten percent, Nippon SteelTradingfive percent, Metal Ore five percent, the public 20 percent, and the private company PT Baruna Inti Lestari will hold 4.9 percent.
In 2009, Latinusa expects its tinplateproduct sales to reach 90,000 mt, rising to 120,000 mt in 2010.