Henry Pribadi eyes Kideco stake

Noted businessman Henry Pribadi is behind one of the companies eying stake in East Kalimantan miner PT Kideco Jaya Agung, sources said.

Pribadi, who is a nephew of tycoon Sudono Salim, controls Indika Group, which is eying a 36 percent stake in Kideco. The other firm, PT Krista Margadata Utama, a mining contractor, is eying another 5 percent stake, according to the sources.

?Pribadi is seeking to secure coal supply for the power plant he plans to build in western part of Java,? a source said.

A Kideco senior official confirmed on Tuesday that the company had been in negotiation Indika and Krista Margadatam for the divestment of its 41 percent shares. The official said the negotiation was now in the final stage and the deal was expected to be reached by April 20.

Under the Coal Contract of Work (CCoW), Kideco is required to gradually divest up to 51 percent of its shares to Indonesian owned companies after 10 years of commercial production. Kideco had earlier managed to sell 10 percent shares to two Indonesian companies namely PT Sumber Mitra Jaya and PT Muji Inti Utama, which got 5 percent each.

Kideco, one of Indonesian top coal producers, is controlled by South Korean pharmaceutical conglomerate Sam Tan Corp.

The government and Kideco have agreed to value the 100 percent shares of Kideco at US$365 million. The figure will be used as a base for divestment price. (Alex)