Sale of Indonesian interests will net Inco $125 million

Through a public offering on the Indonesian stock exchange, Inco (TSE) will sell 20% of its interest in PT International Nickel Indonesia (PT Inco). The sale will net proceeds of US$250 million, resulting in an after-tax gain of US$125 million. After the sale, Inco’s interest in PT Inco will drop to 58.2% from 78.2%.

Under an agreement made with the Indonesian government in 1968, Indonesians are to be given the opportunity to purchase up to 20% of the shares. Recently, the share price has jumped to the equivalent of US$5.38 from the initial offering range of US$4.39- 5.22.

PT Inco owns and operates an integrated nickel mining and processing operation, and expects to produce 70 million 1b. of nickel this year.