No conflict of interest in Armadian?s plans to buy Berau Coal: Lawyer

Law firm Lubis Ganie Surowidjojo (LGS) said Thursday there would be no conflict of interest in PT Armadian Tritunggal?s plans to exercise its pre-emptive rights to acquire PT United Tractors?s (UT) stakes in PT Berau Coal.

LGS in its legal opinion made available by The Jakarta Stock Exchange opined that Theodore Permadi Rahmat and Benny Subianto, both are commissioners in UT parent company PT Astra International Tbk, were no longer shareholders in Armadian.

Theodore and Benny had indirect stakes in Armadian through PT Tri Nur Cakrawala (TNC), PT Triputra Investindo Arya (TIA), and PT Kirana Megatara (KM), but later TNC, TIA, and KM sold all their stakes in Armadian to PT Mentari Bukit Makmur, Hendry Ngadimin, Judiono Tosin, and David Jahja on April 29, 2004.

After the acquisition, both MBM and Hendry Ngadimin have 33.332 percent shares each in Armadian, while Judiono Tosin and David Jahja have 16.668 percent each.

UT signed a sales and purchase agreement with PT Indika Inti Corpindo on April 2 to sell its entire 60 percent stakes in Berau, for US$44.56 million to pay its debt.

However, Berau?s existing shareholders, Armadian and Japan's trading powerhouse Sojitz Corp. (formerly Nissho Iwai), have option until June 7 to exercise their pre-emptive right to buy UT?s shares with similar terms and condition with Indika.

According to the lawyer?s statement, on April 16, 2004 Armadian sent a letter to UT to conduct due diligence on Berau.

Berau is one of Indonesia's top coal producers with a production of 7.46 million tons of coal last year.

MBM is linked to Berau?s mining contractor PT Bukit Makmur Mandiri Utama (BUMA).

UT earlier said that transaction is expected to be closed by July 30, 2004, while the agreement would be dropped if no transaction occurred as of August 31, 2004.(robert)