George Soros eyeing shares in KPC
Monday, June 12 2000 - 03:30 AM WIB
World's savvy financier George Soros is eyeing for a stake in coal mining giant PT Kaltim Prima Coal (KPC) through his local investment company Batavia Investment Management Ltd.
A source at the Ministry of Mines and Energy was quoted by the Satunet.com online as saying that the East Kalimantan administration had sent a letter on February 29 to the Minister of Mines and Energy saying that it's serious about plans to buy up to a 51 percent stake in KPC.
The letter said that the administration had formed a provincial owned company called PT Melati Bhakti Satya to realize the plans.
The letter said that Batavia Investment would provide up to US$300 million in financing for the acquisition of the KPC shares.
The letter also said that Melati would also cooperate with PT Intan Inti Bumi Pradana, a Jakarta-based firm related to the Salim Group, the country's largest conglomerate.
The source, however, said that it's still unclear whether George Soros would become a shareholder in the company or would just become a financier. He said that according to the mining contract of KPC, the company is obliged to only sell its shares to local individuals or companies. (*)