Two companies likely buy 10 percent of Kideco?s shares

Of the 37 percent shares of East Kalimantan-based coalminer PT. Kideco Jaya Agung offered to Indonesian companies as part of divestment requirement, only 10 percent are likely taken, a government source said.

?There are only two buyers left, coal-mining contractor Sumber Mitra Jaya, and coal miner Gunung Bayan Pratama, each will take 5 percent at the basis price of US$ 415 million for 100 percent shares,? said the source.

However, the source warned that the sales agreement had not been finalized yet.

Previously, director general of geology and mineral resources Wimpy S. Tjetjep said there were four companies are still interested to acquire shares of Kideco.

Under the Coal Contract of Work, foreign coal miners operating in Indonesia are required to gradually divest 51 percent of their shares to Indonesian business entities. In 2001, Kideco was scheduled to offer 37 percent of its shares and another 7 percent in 2002.

The government and Kideco had yet come with 2002 divestment price, but the source indicating that the valuation for Kideco?s 100 percent shares would be lower than 2001 valuation.

?That?s why the companies are not in hurry to buy all the shares offered. The remaining 27 percent shares that are not sold in 2001 divestment will be carried over to 2002 divestment offer, with base price that would likely be significantly lower,? said the source.

Kideco is currently 100 percent owned by South Korea?s Sam Tan Corp. Kideco has production capacity of 14 million tons of coal annually. (godang)