Indocement to farm out from Indominco Mandiri

Publicly listed company PT Indocement Tunggal Prakarsa said on Thursday it had signed a ?Conditional Shares Sale and Purchase Agreement? with PT Indo Tambang Raya Megah and PT Centralink Wisesa to sell its 35 percent stake in coal producing firm PT Indominco Mandiri.

Under the agreement, PT Indo Tambang Raya Megah and PT Centralink Wisesa will respectively get 34.992 percent and 0,008 percent stake in Incomindo, Indocement said in a statement to Jakarta Stock Exchange.

The company said transaction of the 35 percent stake would amount to US$ 10.5 million, and expected to close the deal by year-end.

Indocement will use the proceeds of the transaction to pay part of its debt, the company added.

Indocement, through its fully owned subsidiary PT Indomix Perkasa, holds 35 percent stake in PT Indominco Mandiri while PT Indo Tambang Raya Megah holds the remaining 65 percent stake.

PT Indominco Mandiri operates a coalmine in Kutai regency in East Kalimantan, producing some 3.5 million tons of coal annually. (robert)