E. Kalimantan will be in losses if it fails to get KPC shares
Wednesday, August 15 2001 - 03:51 AM WIB
The potential losses would be in the form of potential dividend payment from KPC to shareholders.
Moreover, if it fails to secure the stake this year, the East Kalimantan administration will have again to fight with KPC shareholders to get the stake next year.
In fact, KPC shareholders has been required by its contract of works to divest its stake at the company starting three years ago, but it never succeeded in selling the stake.
An assistant to the secretary of the East Kalimantan Administration, Syaiful Teteng, said on Tuesday: "We will continue to fight to get that 51 percent stake."
Negotiations between the government and KPC shareholders seem to have reached a deadlock point as the two parties remained in their initial position over the price of the stake.
KPC shareholders, according to Syaiful Teteng, maintained that they wanted to sell the 51 percent stake at US$448 million, while the East Kalimantan administration bargained it at around $300 million. (*)