Investors eying KPC stake launch public expose

Four of the five investors which have expressed interest to purchase stake in the East Kalimantan coal mining giant PT Kaltim Prima Coal (KPC) held a public expose on Monday at the East Kutai legislative council building.

KPC is obliged to divest up to 51 percent stake to local buyers.

The local Kaltim Post daily said that ex-army general Prabowo Subianto seems to win the most attention during the presentation. Prabowo is president of PT Nusantara Energi.

Prabowo said Nusantara Energi wanted to purchase the 51 percent KPC stake, and was ready to allocate 12 percent for the local government, and to contribute around US$2 million per year to finance community development program.

Winning the support of the East Kalimantan government is important to ensure a smooth transaction process for the KPC stake.

The son in law of the country?s ex-authoritarian leader said that he would seek overseas financing for the share acquisition.

Reports earlier said that banks in Middle East were ready to support Prabowo?s acquisition plan. He had been staying in Jordan for quite sometime following the downfall of former president Soeharto in 1998.

Non-governmental organizations (NGOs) attending the public expose gave applause to Prabowo?s presentation, Kaltim Post said.

Other investor candidates making their presentation are PT Bumi Resources Tbk., PT Batu Bara Borneo Batuah, and PT E-Capital Securities.

PT Intan Bumi Inti Pradana (IBIP) was unable to participate because its management had to testify at a Jakarta court over legal dispute between the East Kalimantan provincial administration and KPC management.

The KPC divestment program is expected to be completed by the end of June.(*)