Berau Coal bidders shortlisted to seven

BNP Paribas, financial advisor for United Tractors? share divestment in East Kalimantan based coal mining firm PT Berau Coal has short-listed 7 bidders out of 17 firms that submitted their bids, according to an industry source.

United Tractors (UT), a publicly listed subsidiary of Astra Internasional is trying to sell its entire 60 percent stake at Berau Coal to pay for its debt that will due soon.

The source told Petromindo.com on Tuesday that out of the seven shortlisted bidders, 4 companies are multinationals that already had operations in Indonesia and three local firms including state coal mining firm PT Tambang Batubara Bukit Asam. Power generating firm PT Indonesia Power had withdrawn its bid, said the source.

According to the source, due diligence on Berau Coal would be conducted in January and final bid would be submitted in March 2002.

The source added that the current 30 percent stakeholder at Berau Coal, PT Armadian Tritunggal had also expressed its interest to acquire UT?s stake.

?They are now evaluating their stance and at the end of this month they would inform BNP Paribas whether or not they would submit their bid,? said the source.

If Armadian Tritunggal is interested, said the source, the company would be given first right of refusal.

Another shareholder in Berau Coal is Japan trading powerhouse Nissho Iwai, holding 10 percent.

Berau Col operates a coalmine in Berau Regenecy in East Kalimantan, with this year?s output targeted at 6.5 million tons. (godang)