United Tractors receives payment of its stake in Berau Coal

Publicly listed heavy equipment producer PT United Tractors (UT) has received about US$5 million as the initial payment for the sale of its 60 percent stake in East Kalimantan-based coal mining firm PT Berau Coal to PT Intra Karsa Corporindo, Bisnis Indonesia reported on Friday.

"UT is believed to have received about US$5 million as advance payment for the company?s 60 percent stake from Intra Karsa," a source told the business daily.

UT?s public relations officer Eugenie M. Djohariah S, however, refused to give detailed information about the payment. Eugenie also refused to disclose the price of the 60 percent stake in Berau Coal but sources estimated that the proceeds from the sale of the shares could reach between US$43 million and US$45 million.

According to Eugenie, the agreement on the sale of the 60 percent stake to PT Intra Karsa was signed in August 21 but would become effective only after all the term and condition on the shares sale and purchase agreement were met.

Berau Coal is one of the country?s major coal producers with annual coal output of about 6.7 million tons. Other shareholders in the company are Armadian Tritunggal with 30 percent stake and Japan?s trading house Nissho Iwai with 10 percent. (*)