East Kalimantan administration, House to meet today over KPC acquisition
Monday, June 5 2000 - 02:30 AM WIB
The East Kalimantan administration is scheduled to meet with the local House of Representatives to discuss the plans to acquire some 37 percent shares in coal mining giant PT Kaltim Prima Coal (KPC).
Legislator Agus Tamtomo Mbus was quoted as saying by the local Samarinda Post daily that the talks would include deciding who would be the private investor to help finance the acquisition plans.
Agus added that the parliament had basically agreed the plans by the local administration to acquire even up to 51 percent of KPC.
KPC is required to divest up to 51 percent of its stake, but for this year it's only obliged to divest up to 37 percent.
The local administration has recently said that it had signed an MOU with Jakarta-based private investor PT Intan to help finance the acquisition of the KPC stake.
Under the plans, Intan would provide full financing, and in return the government would have a 10 percent stake out of the 37 percent stake.(*)