Indocement may sell its stake in its coal mining affiliate to Thai firm

Publicly listed cement producer PT Indocement Tunggal Prakasa will sell its 35 percent stake in coal mining company PT Indominco Mandiri to Thailand?s Banpu Public Company Ltd as part of the cement producer?s business consolidation program, Bisnis Indonesia reported on Saturday.

The newspaper said that the management of Indocement was still negotiating the sale and purchase agreement with the Thai company.

Christian Kartawijaya, Indocement?s senior manager said in Jakarta on Thursday that the two companies were still finalizing the sale and purchase deal. He added that proceeds from the sales of Indocement?s 35 percent stake in Indominco would be used by the cement producer to repay its debts.

Indominco whih operates coal-mining concession in Bontang, East Kalimantan is currently 35 percent owned by Indocement and other 65 percent by Indocoal.

Indocement has appointed BNP Paribas Peregrine as an advisor to help the company in selling the 35 percent stake in the coal mining company. (*)