JAKARTA (TheInsiderStories) – British–Swiss multinational mining company, Glencore, takes an 18 percent share of Indonesian bauxite mining company PT Cita Mineral Investindo Tbk (IDX: CITA) worth Rp1.2 trillion (US$85.71 million) after its majority shareholder PT Harita Jayaraya completed the sale of 606,732,282 shares on Dec, 18.
“On December 18, Harita Jayaraya as the controlling shareholder completed the sale of 606,732,282 shares of the company, representing 18 percent of all the company’s issued shares to Glencore,” CITA’s director Harry Kusuma Tanoto said in the disclosure of information released Friday (12/20).
The share sale, he went on, was carried out based on Harita Jayaraya‘s policy as the controlling shareholder of the company and it was convinced that there were no negative impacts affecting the company’s revenue and business continuity for the transaction.
“There are no adverse impacts on operational activities, law, financial condition or business continuity of the company,” Kusuma said.
On December 18, the company’s shares were traded on the negotiated market with 606.73 million shares at a price of Rp2,076 per share. The transaction price of the company that uses the trademark “Harita Bauxite” is calculated as premium, or higher than the market price, or 15.33 percent above the price on the regular market at that time Rp1,800 per share.
As of September this year, the bauxite mining shareholders consisted of Harita Jayaraya (Harita Group) of 90.96 percent, PT Suryaputra Inti Mulia holds 6.37 percent, and the public of 2.67 percent.
The transaction marks the official release of the company’s shares to a new investor, Glencore, which was announced by the company last August. To release the shares, the company has held an extraordinary general meeting of shareholders at the end of September and received shareholder approval. Headquartered in Switzerland, Glencore occupies the 10th position based on the list of the world’s largest companies in the Fortune Global 500 version in 2015.
Besides share sale, the shareholders also approved the company’s plan to issue a maximum of 648.21 million new shares through a mechanism of limited public offering in the framework of pre-emptive rights.
Transaction data on the market today shows that there are two CITA stock transactions, which are both facilitated by two similar securities companies, which are sold by local investors through PT Harita Kencana Sekuritas and bought by foreign investors through PT Citigroup Sekuritas Indonesia.