Timah eyeing Kideco shares

State tin miner PT Timah Tbk. is interested to buy shares of East Kalimantan coal miner PT Kideco Jaya that is being offered for sale as part of the company’s divestment obligation.

“Timah had sent letter of interest in reply to Kideco’s offer,” said Timah president Thobrani Alwi.

Under the Coal Contract of Work (CCoW), Kideco is required to gradually divest 51 percent of its shares to Indonesian owned company after 10 years of commercial production. Kideco had managed to sell 10 percent shares to two Indonesian companies namely PT Sumber Mitra Jaya and PT Muji Inti Utama, which got 5 percent each.

The Ministry of energy and Mineral Resources and Kideco had agreed on a US$365 million valuation of the entire shares of the company.

Earlier, Kideco’s official said five companies had submitted letter of interest to buy the company’s 41 percent shares.

Thobrani said Timah is eyeing to form a consortium with Sumber Mitra Jaya and Muji Inti Utama to enable Timah to take control of Kideco’s management. “Talks are underway,” he said. The consortium, in which Timah would hold majority shareholder, will hold 51 percent stake of Kideco. (alex)