United Tractors' shareholders agree to sell Berau Coal

Shareholders of the publicly listed PT United Tractors Tbk have formally approved the company's plan to sell its subsidiary PT Berau Coal, one of major coal producers in East Kalimantan.

The shareholders have also approved UT's plan to issue new shares (rights issue) as part of the company's debt repayment program.

"At least 80 percent of proceeds to be raised from the sale of the shares will be used to buy back debts through 'reverse dutch auction' as stated in the company's 2004 debt restructuring plan," the company's president Hagianto Kumala said.

As for Berau Coal, he said that the coal mine company would be sold to PT Indika Inti Corpindo or the existing shareholders such as PT Armadian Tritunggal or Sojitz Corporation.

"If the existing shareholders are not interested, Berau Coal will be then sold to Indika," Hagianto said.

The issuance of the right shares and the plan to sell Berau Coal are part of UT's debt restructuring plan which has begun effective this year. (*)