Bidding of UT's stake in Berau Coal to be closed in first semester of 2002

Publicly listed PT United Tractor (UT) said on Friday it hoped the bidding of its 60 percent stake in PT Berau Coal could be closed in the first semester of next year.

?We hope the bidding of Berau Coal shares can be closed in the first semester of 2002,? UT?s investor relations manager Tjandrawati Waas said in a capital market workshop in West Java on Friday.

The process of auctioning the Berau shares started in mid October when UT said domestic and foreign parties were welcome and would have the same opportunity to participate in the bidding.

Tjandrawati said on Friday 10 local and foreign investors had expressed their interest in the Berau shares offered by UT. Among them was publicly listed tin producer PT Timah Tbk, she said.

She said the proceeds of the share sales would be used for paying its debts of Rp 100 million which will fall due next year.

Berau Coal so far has contributed Rp 948 billion to UT, according to Tjandrawati. Its annual production has reached 6 million tons.

Also having a stake in Bureau Coal are PT Amadian Tritunggal (30 percent) and Japanese trading powerhouse Nissho Iwai (10 percent).

Meanwhile, Tjandrawati also said UT would divest its subsidiary PT Pamapersada Nusantara with an aim to obtain fresh funds for repaying its debts.(leo)