Indonesia's largest tin producer PT Timah Tbk (TINS) is rumored to enlarge holding in PT Koba Tin. As reported by a local newspaper today, Timah is currently holding 25% stake in Koba Tin and the remaining is controlled by Malaysia Smelting Corporation Berhad (MSC).
A source said Timah is conduction an internal audit as preparation to acquire additional stake in Koba Tin. "Timah intends to be majority in Koba Tin. But, source of financing hasn't discussed," the source said.
Timah Corporate Secretary Abrun Abubakar said the company is ready to enlarge stake in Koba Tin. But, so far there is no inquiry from our shareholder," he said.
State-Owned Minister Mustafa Abubakar admitted that he didn't acknowledged with the proposed acquisition.
Koba Tin manages 41,680 hectares of concessions in Southeast Bangka. The company targets 10,000 tons production end of 2010.
Disclosure: No position at the stock mentioned above.
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