United Tractors to sell its mining units

PT United Tractors has targeted to divest its ownership at two mining companies, PT Berau Coal and PT Pama Persada Nusantara, this year in a bid to raise US$100 million to pay its short-term debt maturing in 2002, Koran Tempo daily reported on Monday (May 21).

United Tractors' investors relations officer Thomas Aslim said that the planned sales of ownership at the two mining companies was part of the company's effort to focus on its core business of heavy equipment.

Thomas said the company would sell 60 percent stake at Berau Coal, but he could not disclose how much stake the company would sell from Pama Persada. "We want to remain a majority shareholder at Pama."

Thomas rejected suggestions that the planned divestment at Pama and Berau be delayed because of the unfavorable market situation. "The divestment will be pursued this year. But when the exact time, it's still difficult to decide."

With the planned sales of ownership at Berau Coal and Pama Persada, the company would cancel its plan to issue bonds and also rights shares to repay its maturing debt. In addition, the company has managed to restructure some of its total debt of US$278.5 million and Rp 147 billion. (*)