Two local firms planning to buy KPC
Friday, March 3 2000 - 02:00 AM WIB
Two local mining firms PT Austindo Mining Corporation and PT Harita Jaya Raya are currently conducting a due diligence audit to buy the 30 percent stake in foreign coal mining firm PT Kaltim Prima Coal (KPC).
The two firms are the only remaining potential buyers so far after several would be investors decided to back down from the offer. State tin mining firm and the East Kalimantan government have said that US$175 million for the 30 percent stake was too expensive.
But many also doubt on whether Austindo and Harita Jaya have the necessary financial resources to buy the 30 percent stake.
Director of coal at the Ministery of Mines and Energy Soedjoko Tirtosoekotjo said that the two local firms might only buy up to 15 percent stake. "They don't have enough money."
KPC is obliged to divest up to 30 percent of its shares by the middle of this month according to its contract of work with the government.(*)