Berau Coal expects to complete divestment in December

The divestment of 60 percent shares of publicly listed PT United Tractors (UT) in coalmining firm PT Berau Coal is expected to be completed in December this year, according to a senior executive of Bureau Coal.

?The Financial advisor BNP Paribas has conducted preliminary valuation and it would soon send an invitation letter to prospective buyers,? Berau Coal?s president director Jeffrey Mulyono said on the sidelines of a seminar on Wednesday.

UT plans to sell its stake in Berau Coal to raise some US$100 million in cash to repay its short-term debts which will mature in 2002.

Jeffery did not say whom the offer shall me made to, but a local newspaper reported that state tin miner PT Timah had expressed interest to acquire the stake.

UT holds 60-percent stake in PT Berau Coal, while another local company, PT Amadian Tritunggal, Japanese trading powerhouse Nissho Iwai hold 30 percent and 10 percent, respectively.

Berau Coal runs a coalmine in Berau regency, East Kalimantan. (Alex)