Update-2: Kideco confirms in talks with two bidders
Tuesday, April 6 2004 - 08:40 AM WIB
?We have been granted 20-day extension and we are now in talks with Indika Group and PT. Krista Margadata Utama as final bidders,? Kideco?s senior official Ali Patan told Petromindo.Com in an interview.
Ali said despite the delay to complete divestment from original schedule of March 31, he was optimistic that Kideco and the bidders would be able to reach deal by April 20.
Under the Coal Contract of Work (CCoW), Kideco is required to gradually divest up to 51 percent of its shares to Indonesian owned companies after 10 years of commercial production. Kideco had earlier managed to sell 10 percent shares to two Indonesian companies namely PT Sumber Mitra Jaya and PT Muji Inti Utama, which got 5 percent each.
Kideco, one of Indonesian top coal producers, is controlled by South Korean pharmaceutical conglomerate Sam Tan Corp.
Government and Kideco had earlier agreed to price 100 percent shares of Kideco at US$365 million. The figure will be used as a base for divestment price.
A government official said if the divestment failed to take place until April 20, Kideco would have to make new share offer based on the price which will be later negotiated with the government. (godang)