Kideco proposes $389 M for entire shares: Source

Coal producer PT Kideco Jaya Agung has valued 100 percent of its shares to be divested to Indonesian investors at US$389 million, an industry source told Petromindo.Com Wednesday.

The company mentioned the amount in its letter sent last Friday to the Ministry of Energy and Mineral Resources, the source said.

?It is up to the government to decide whether or not to approve the proposed share price,? the source added.

Kideco, a subsidiary of South Korean company Sam Tan Corp operating coalmines in East Kalimantan, is in the process of divesting 51 percent of its shares to Indonesian investors according to its contractual obligations.

Existing standard procedures require Kideco to sell its shares to Indonesian companies or Indonesian nationals through the government.

In 2001, Kideco offered 34 percent of its shares, but only 10 percent was sold. Again, it offered 34 percent of its shares last year, but no investor bought it.

Kideco said last week, it would soon offer the remaining 7 percent of it shares.

Kideco share divestment had proceeded slowly due to demand from East Kalimantan provincial administration that the province must be given priority to acquire its shares.

The East Kalimantan administration filed a suit in the Balikpapan district court in East Kalimantan against Kideco. The court however turned down the lawsuit on the ground that Kideco is domiciled in South Jakarta. (godang)