United Tractors yet make transaction on Berau Coal share divestment

United Tractors Group said on Tuesday it had not yet made transaction with PT Intra Karsa Corporindo following their agreement to sell to Intra its 60 percent stake in East Kalimantan-based coal mining firm PT Berau Coal.

The share sale and purchase agreement was signed in August 2002.

Hagianto Kumala, president director of PT United Tractors Tbk which is the parent company within the United Tractors Group, said they were continuing intensive negotiations with Intra?s leaders to follow up on their agreement.

?They still show interest to complete the Berau share divestment,? Hagianto said in a statement to the Jakarta Stock Exchange management.

Hagianto did not disclose the price of the 60-percent stake. Earlier reports said the share sale could reach US$43-45 million. The Berau share divestment proceeds would be used for repaying debts which amounted to $89.5 million. The debts would fall due at the end of this year.

Berau Coal is one of the country?s major coal producers with annual coal output of about 8.7 million tons. Other shareholders of the company are Armadian Tritunggal with 30 percent stake and Japan?s trading house Nissho Iwai with 10 percent.

Meanwhile, PT United Tractors presently has 21-percent stake in PT Berau Coal, while its 100 percent owned unit United Tractors Heavy Industry (UTHI) controls 39 percent shares of the coal miner. (robert)