PT Indonesia Asahan Aluminium signed a heads of agreement to acquire Indocopper Investama Corp. from Freeport-McMoRan Inc. for approximately $350 million.
July 11, 2018
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PT Indonesia Asahan Aluminium (Persero) signed a heads of agreement to acquire Indocopper Investama Corp. from Freeport-McMoRan Inc. (NYSE:FCX) for approximately $350 million on July 12, 2018. As a result of this transaction, PT Indonesia Asahan Aluminium will get an indirect 9.36% stake in PT Freeport Indonesia. In a related transaction, PT Indonesia Asahan Aluminium (Persero) signed a heads of agreement to acquire stake in a joint venture of Rio Tinto and PT Freeport Indonesia from Rio Tinto for $3.5 billion. The transaction is subject to the negotiation and documentation of definitive agreements, including purchase and sale agreements, the extension and stability of PT Freeport Indonesia’s long-term mining rights through 2041 in a form acceptable to Freeport-McMoRan and Inalum, a shareholders’ agreement between Freeport-McMoRan and Inalum providing for continuity of Freeport-McMoRan’s management of PT Freeport Indonesia’s operations, and resolution of environmental regulatory matters satisfactory to the Indonesian Government, Freeport-McMoRan and Inalum. The terms of these agreements will be subject to Freeport-McMoRan Board approval. Deal is expected to close during the second half of 2018. As per announcement of September 28, 2018, the transaction is expected to close by the first quarter of 2019. Morgan Stanley acted as financial advisor to PT Indonesia Asahan Aluminium. Marc O. Williams, Darren M. Schweiger, Julian Azran, Katey Peardon, William A. Curran, Pritesh P. Shah and Sartaj Gill of Davis Polk & Wardwell LLP acted as legal advisors to Freeport-McMoRan Inc.
Freeport-McMoRan Inc. specializes in the exploration and operation of copper and gold mines located primarily in the United States, Peru, Chile, Indonesia and Congo. Net sales break down by family of products as follows:
- copper (74.6%): refined copper and copper concentrates (4.1 billion ounces sold in 2023);
- gold (14.5%): 1,713,000 ounces sold;
- molybdenum (8.4%): 1.3 billion ounces sold;
- other (2.5%).
Net sales are distributed geographically as follows: the United States (31.8%), Switzerland (17.4%), Japan (15%), Spain (5.5%), Singapore (5.1%), China (4.7%), Indonesia (3.3%), Germany (3.1%), Chile (1.9%), the United Kingdom (0.7%), and other (11.5%).
PT Indonesia Asahan Aluminium signed a heads of agreement to acquire Indocopper Investama Corp. from Freeport-McMoRan Inc. for approximately $350 million.
FREEPORT-MCMORAN INC. 
