Kideco share offer begins to draw interests

East Kalimantan based coal mining company PT. Kideco Jaya Agung said on Wednesday that several parties had express their interests to acquire 37 percent of its shares which the company is currently offering.

?We have sent letter to some potential buyers and some of them had expressed their interest,? said Kim Dong Sook, the company?s managing director.

Kim declined to mention interested parties but he said that the company is still waiting for the reply from interested parties until the end of this month.

He said the company had also made formal offer to the East Kalimantan regional government, but thus far had received no reply.

Earlier, another company official from Kideco said until mid-February this year, no parties had expressed their interests to acquire Kideco?s shares.

In 2001, Kideco is scheduled to offer 37 percent of its shares to Indonesian owned business. In December 2001, the company and the government had agreed to value 100 percent of the company at US$ 415 million. Divestment offer for 2001 will end March 2002.

Under Indonesian coal contract of work, foreign investment coal mining firm must gradually divest up to 51 percent of shares to Indonesian owned entity after 10 years of production. In 2002, Kideco is required to divest 44 percent of its shares.

Kim said if no deal were not reached for 37 percent share divestment, the company would then close the 2001 share offer and would begin negotiation with the government to decide new price for 44 percent share offer.

Kideco is one of Indonesia?s top coal producers, operating a coalmine in Pasir regency, East Kalimantan.The company, which is currently wholly owned by Sam Tan Co.Ltd of South Korea, plans to produce some 11.5 million tons of coal in 2002. (alex)