BHP Billiton reluctant to sell Arutmin shares to Bakrie
Tuesday, September 11 2001 - 03:55 AM WIB
The process of the divestment of PT Arutmin shares to local companies could face a problem as the company?s foreign shareholders BHP-Billiton of Australia is reported to have rejected to sell their stake to its local partner Bakrie and Brothers.
Sources told Republika on Monday that BHP-Billiton refused to divest its shares to Bakrie due to the latter?s financial difficulties.
Arutmin is requested to divest 31 percent of its shares to local companies this year as part of the divestment policy imposed on foreign mining companies.
The sources said as part of the cooperation agreement Bakrie, which is now under an acute financial problem due to its huge foreign debts, has been given an option as the first company to buy the shares.
PT Arutmin, which operates coal mining in South Kalimantan, is 80 percent owned by BHP-Billiton, and 20 percent by Bakrie.(*)