Berau denies divestment plan

East Kalimantan coal mining firm PT.Berau Coal refuted on Tuesday news report that said the company?s majority shareholder is in the process of selling its shares in the company.

?Up to this point, PT.Armadian Tri Tunggal is not initiating move to sell its shares in Berau. If there is such move, I would have been informed,? Berau Coal CEO Bob Kamandanu told Petromindo.Com.

Armadian, which has 51 percent stake at Berau is controlled by Ibrahim Risjad family.

Reuters, citing sources, reported on April 6, 2009 that Armadian is exploring the sale of its majority stake in Berau Coal, in a sale that could value the coal firm at around US$1 billion.

Armadian is seeking advice from Deutsche Bank and Bank of America's Merrill Lynch, two sources with direct knowledge of the deal told Reuters.

Berau Coal, Indonesia's fifth-biggest coal miner, is a joint venture between Tritunggal, Dutch firm dan Rognar Holding B.V. and Japanese firm Sojitz Corp, with Rognar and Sojitz owning 39 percent and 10 percent stakes. (bernard)