East Kutai Regency to sell five percent stake in PT KPC
Saturday, August 19 2006 - 02:48 AM WIB
The East Kutai House of Representatives agreed to sell the stake in a plenary session on the amendment of regional budget for 2006 on Friday.
?The sale of five percent stake will be the best alternative. The objective is to improve the prosperity of East Kutai people,? said Awang Faroek, a spokesman for KTE, following the plenary session.
Awang also disclosed that four companies -- PT Lumbung Borneo Energi, PT Minang Jordanindo, PT EI Rose Brothers and PT Prakora Daya Mandiri ?- had expressed their interest in buying the stake.
?We will sell (the stake) to a company that offers the highest price. This is purely business,? he said.
East Kutai received 5 percent shares of KPC for free from current 95 percent shareholder PT. Bumi Resources. The free shares were given to smoothen acquisition process from previous owners; Rio Tinto and BP. Bumi has agreed to sell its entire stake in KPC together with 100 percent shares in South Kalimantan coal miner PT. Arutmin Indonesia to PT. Borneo Lumbung Energi for US$2.3 billion.(*)