CORRECTION: Armadian, Sojitz may block Indika?s plan to acquire Berau Coal
Friday, May 14 2004 - 01:48 AM WIB
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Armadian, Sojitz may block Indika?s plan to acquire Berau Coal
Effort by Indonesian firm PT Indika Inti Corpora (IIC) to acquire 60 percent shares of East Kalimantan coal miner PT Berau Coal from heavy maker equipment PT United Tractors may be blocked by Armadian and Japan?s trading powerhouse Sojitz Corp, which already control 40 percent of Berau Coal shares.
Industry sources contacted by Petromindo.Com on Thursday confirmed that Armadian and Sojitz might exercise their pre-emptive right to block Indika?s entrance to Berau Coal. Armadian has 30 percent stake at Berau, while Sojitz has 10 percent.
On April 2004, Indika signed deal with United Tractors to purchase the latter?s 60 percent shares in Berau Coal for US$44.56 million. However, existing shareholders has 60 days until June 6 to exercise their pre-emptive right to buy Berau Coal?s shares with similar terms and condition with Indika.
One source said Armadian had conducted due diligence on Berau and decision would be concluded soon. ?There are rumors that Indika would take 55 percent and Sojitz would take 5 percent (of Berau Coal?s shares),? said one source.
Indika, which is controlled by individuals linked to Indonesia?s top conglomerate Salim Group, had also bought 41 percent shares of east Kalimantan coal miner PT Kideco Jaya Agung. Sources said that Indika?s move is part of its business plan to secure coal supply to its planned coal-fired power plant in the western part of Java. Indika is reportedly backed up by Chinese power giant Huadian Group. (alex/godang)