PTBA delays SPA signing until June 2005

The signing of sales and purchase agreement (SPA) between state-owned coal producer PT Tambang Batubara Bukit Asam Tbk (PTBA) and PT Multi Harapan Utama (MHU) has been postponed until next month.

PTBA wants to buy up to 100 percent stake in MHU.

The main reason for the delay is the PTBA is still waiting for the audit result of MHU's financial statement from the independent auditor Ernst & Young, It wants to know the state of MHU's debts and the assets.

"We are still wating for the 2004 audit report as well as the limited audit up to the transaction date. After two weeks receiving these reports, the principal agreement regarding SPA will be signed. At the most, it will be done in June," PTBA company secretary Milawarma said in Jakarta recently.

Milawarma said that MHU is not a public company that's why there is no time limit for the completion of the audit.

MHU, according to Milawarma, is having a production capacity of 1.6 million tons per year and this can be raised to 2-2.5 million tons per year.(godang)