Freeport-McMoRan Reports Agreements For Inalum's Acquisition Of Shares In PT-FI

(RTTNews) - Freeport-McMoRan Inc. (FCX) announced it has entered into a divestment agreement on previously agreed economic terms with the Indonesian state-owned enterprise PT Indonesia Asahan Aluminium (Persero) (Inalum) in connection with Inalum's acquisition of shares of PT Freeport Indonesia. Inalum will acquire for cash consideration of $3.85 billion all of Rio Tinto's interests associated with its Joint Venture with PT Freeport Indonesia (Joint Venture), and 100 percent of FCX's interests in PT Indocopper Investama, which owns 9.36 percent of PT Freeport Indonesia.

At closing, Rio Tinto will receive $3.5 billion, and Freeport-McMoRan will receive $350 million, in cash proceeds. Under the terms of the divestment agreement, the Rio Tinto interests will be merged into PT Freeport Indonesia concurrent with Inalum's acquisition in exchange for a 40 percent share ownership in PT Freeport Indonesia.

Following completion of the transactions, PT Freeport Indonesia will have an expanded asset base to include the Rio Tinto interests and Inalum's share ownership will be 51.2 percent of PT Freeport Indonesia, and Freeport-McMoRan's ownership will be 48.8 percent.