Kepco plans to divest ownerships in Bayan, Adaro

State-run Korea Electric Power Corp (Kepco) is considering to divest its 20 percent stake in IDX-listed coal giant PT Bayan Resources Tbk, and 1.2 percent stake in another IDX-listed giant PT Adaro Energy Tbk amid pressure from the country?s lawmakers to reduce debt, the Wall Street Journal reported Thursday quoting people familiar with the matter.

Kepco acquired the Bayan shares in 2010, to secure 2 million metric tons per year of coal supply from 2012, and 7 million tons per year from 2015 onward. At current market value, the 20 percent stake is worth about US$500 million.

The South Korean firm acquired 1.5 percent shares in Adaro in 2009 for $51 million, allowing it to secure 3 million tons per year of coal supply. Kepco has since sold part of that stake. The 1.2 percent stake is valued at about $31 million.

The paper said that Kepco is also planning to sell assets in other countries. (*)