PTBA mulls acquiring Kideco?s shares

South Sumatra-based state coal mining firm PT Tambang Batubara Bukit Asam is studying the possibility to acquire shares in East Kalimantan-based coal mining firm PT Kideco Jaya Agung, which is obliged to divest 37 percent of its shares in 2001.

Kideco, under the coal contract of work has to divest 37 percent of its shares to Indonesian government or to Indonesian business entity in 2001. The government and Kideco had recently agreed that the price for 100 percent of Kideco?s shares was set at US$ 415 million.

?However, the decision whether or not we are going to bid for Kideco will be largely depend on our success in acquiring stakes at PT Berau Coal. If PTBA wins the Berau Coal bid, then we?ll have to drop the Kideco acquisition plan because of funding limitation,? Ismet Harmaini, PTBA?s president told Petromindo.com in an interview recently.

PT BA has been short listed as one of the bidders to acquire a 60 percent stake in East Kalimantan-based Berau Coal, which is being offered for sale by parent company heavy equipment maker PT United Tractors.

Kideco, which is 100 percent owned by Sam Tan Co. Ltd. of South Korea, plans to produce 10 million tons of coal this year. (alex)