Adaro?s shareholders to sell 17% shares: Report

Goldman Sachs, Citigroup and hedge fund Farallon are looking to sell around 17 percent of IDX-listed energy firm Adaro Energy to strategic investors, Kontan reported Friday

A source with direct knowledge of the matter said Goldman Sachs, which has a 9.94 percent stake in Adaro, is coordinating the sale of the shares.

Goldman, Citigroup, Farallon, the Government of Singapore Investment Corp and Kerry Coal had a combined 25 percent stake in Adaro as part of a consortium at the time of company's IPO in July 2008.

Based on the latest share price, the stake is worth about $500 million.

Meanwhile, Adaro?s corporate secretary Andre Mamuaya said that he did not know about the issue. ?As far as I know, there have been no talks with the Adaro management on the plan,? he said.

Adaro Energy is a holding company, which owns South-Kalimantan coal miner PT Adaro Indonesia, coal terminal operator PT Indonesia Bulk Terminal, coal mining contractor PT Saptaindra Sejati and power plant operator PT Makmur Sejahtera Wisesa.

Adaro Indonesia, the country's second largest producer has targeted coal production at 42-45 million tons this year. According to Terence Willsteed & Associates, it has mineable coal reserves of 928 million tons, with the total resources estimated at 2.8 billion tons as of December 31, 2007. (*)