House member blasts plans to form new firm to buy KPC shares
Wednesday, August 20 2003 - 04:20 AM WIB
?We do not want to see any new problem arising concerning the divestment of KPC shares,? the paper quoted as saying Emir Moeis, vice chairman of DPR?s Commission VIII in charge of energy and mineral resources. Emir is the member of the country's largest party PDI-Perjuangan.
Emir said no party or individual could change the House?s agreement with the government that 31 percent of the 51 percent shares to be divested by KPC would go to East Kalimantan provincial administration and the remaining 20 percent to PTBA.
He commented on the reports that PTBA had agreed with East Kalimantan provincial administration, East Kutai regency administration and PT Intan Bumi Inti Persada to form a new company to take over 51 percent of KPC shares. Bumi Intan is the company which financially supports East Kalimantan in its bid to acquire KPC's shares.
Under the agreement, PTBA will own 7.8 percent of the new joint venture, and will indirectly hold a 3.9 percent stake in KPC.
The agreement came following announcement by KPC shareholders, Rio Tinto and BP Plc, that they had clinched a deal with PT Bumi Resources, allowing the latter to buy their entire shares in KPC for US$500 million.
The announcement surprised the government, PTBA and East Kalimantan, as it came while negotiations were underway between PTBA and East Kalimantan for the acquisition of 51 percent shares in KPC.
Bumi said however that it would offer 51 percent of KPC shares to PTBA and East Kalimantan, in line with the agreement reached between the government and KPC shareholders.
KPC operates a huge coalmine in Sangatta, East Kalimantan. (*)