Two private firms competing to become financier for acquisition of KPC shares
Wednesday, March 20 2002 - 01:55 AM WIB
The local Kaltim Post daily quoted senior legislator M. Mudjiono as saying Monday that B4 offered a better benefit package for East Kalimantan compared to those promised by other potential investors.
The paper said that B4 was willing to give East Kalimantan a 12 percent stake in KPC for free, plus some US$5 million in donation to improve the welfare of the local people.
No details of B4 were mentioned.
B4 seems to be a serious challenger to another private investor called PT Intan Bumi Inti Persada (IBIP), which had already signed an MoU with the East Kalimantan provincial administration.
IBIP had earlier promised the East Kalimantan government a 10 percent stake in KPC for free. No cash donation was mentioned. IBIP is linked to the Salim family, the country?s once power business conglomerate, and is chaired by an ex-military general.
The central government has appointed the provincial administration to have the first priority to purchase the 51 percent stake of KPC valued at around US$419.22 million. But the provincial government will also have to ?cooperate? with the East Kutai regency government in the acquisition process since KPC is located in the regency.
Meanwhile, East Kalimantan provincial senior legislator Agus Tamtomo was quoted by the evening Suara Pembaruan daily as saying that IBIP should be appointed as the financier of the KPC acquisition because it was the company who first informed the province on the possibility of acquiring the KPC shares.
He also said that IBIP had already signed an MOU with the provincial administration since late last year.(*)