Lebong asks court to freeze Avocet shares

PT Lebong Tandai, a unit of Merukh Enterprises, has asked the ministry of law and human rights to freeze the shares and all assets of PT Avocet Bolang Mongondow (ABM) in Indonesia to ensure that the latter would not sell and transfer its shares and assets to other parties.

Alexander Yopi, public relations manager of PT Lebong Tandai, said in Jakarta on Wednesday that the request was part of the company?s legal suit filed against ABM?s parent UK mining firm Avocet Mining PLC at the South Jakarta district court recently over the proposed sales of its assets worth about US$200 million to J&Partners.

He said that the sales were against an agreement signed between Lebong Tandai and Avocet in April 26, last year. Under the agreement, Avocet agreed to sell its 80 percent of its shares in PT Avocet Bolang Mongondow to Lebong Tandai.

Also as parts of the agreement, Avocet should also sell its assets in Southeast Asia including a gold mine in Penjom, Malaysia for $250 million to, Alexander said. Under the agreements, Lembong Tandai has the right of first refusal if Avocet plans to sell its assets.

Kontan newspaper reported that on Feb. 7, this year. Avocet had received cash worth $100 million from Indonesian company J&Partners for the purchase of Avocet?s assets in Southeast Asia.

According to Brett Richard, the chief executive officer of Avocet, said that the $100 million fund was part of the purchase and sales agreement with J&Partners. He said that in order to be able to secure its rights to buy the assets, Lebong had to pay $120 million on March 21 at the latest. The payment would be needed to contest J&Partners? bid, Richard said. (*)