Kideco, Indika expect to close transaction early July

East Kalimantan-based coal producer PT Kideco Jaya Agung said Monday South Korean chemical conglomerate Sam Tan Corp had received payment of 10 percent from PT Indika Inti Corpindo to buy a 41 stake in Kideco.

?Transaction for the remaining payment is expected to be closed by July 7,? Kideco managing director Kim Sung Kook told Petromindo.Com on sideline of CoalTrans conference in Bali.

Sam Tan Corp, Kideco's 90 percent shareholders signed deal to sell its 41 percent shares last April to Indika for US$ 150 million.

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. Sam Tan had earlier managed to sell 10 percent shares to two Indonesian companies namely PT Sumber Mitra Jaya and PT Muji Inti Utama.

Kideco operates a huge coalmine in Pasir regency, East Kalimantan, with production capacity of 18 million tons per annum. (alex)