Indika signs deal to buy 41 percent Kideco stake
Thursday, April 8 2004 - 05:44 AM WIB
"The deal has been signed," a Kideco official who wanted to remain anonymous said on Thursday.
The deal, which followed the one allowing Indika to buy a 60 percent stake in Berau Coal, also in East Kalimantan, has instantly elevated Indika?s status from a less-known firm to a major player in the country?s fast-developing coal industry. The firm is said to be controlled by Henry Pribadi, the nephew of tycoon Sudono Salim.
Kideco produces about 14 million tons of coal annually, while Berau?s annual output stands at about 8 million tons.
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 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.
Following the deal with Indika, Sam Tan now is still a majority shareholder in Kideco with a 49 percent stake.
Sources said Indika is backed up by Chinese power giant China Huadian Group in its aggressive acquisition drive. The Chinese state-owned firm plans to build a power plant in Java and the acquisitions aim to secure coal supplies to the power plant. (Alex/Godang)