Bhakti Investama denies involvement in taking over KPC stake

Publicly listed local investment house PT Bhakti Investama Tbk denied that it was trying to acquire 51 percent shares of giant coal mining firm PT Kaltim prima Coal (KPC).

?Contrary to media reports, Bhakti does not involved in any plan to acquire KPC stake. We have nothing to do with that,? said the company?s corporate secretary Dorothea Pantow in a report to the Jakarta Stock Exchange on Saturday.

Earlier media reports said that US based financier George Soros and Bhakti teamed up to acquire 51 percent shares of KPC through the formation of a local company PT Intan Bumi Persada.

Under Indonesian coal contract of work, KPC had to divest 51 percent of shares to Indonesian business entity.

Director general for geology and mineral resources at the Ministry of Energy and Mineral Resources Wimpy S, Tjetjep earlier said that the take over of KPC shares by foreigners would be against the divestment procedure as stated in the contract.

KPC shareholders, Anglo-Australian giant miner Rio Tinto and Anglo-American energy giant BP Plc is currently holding intensive negotiations to determine the value of 51 percent stake of KPC.

KPC, which operates a giant coal mining in East Kalimantan is Indonesia?s second largest coal producer. (alex)