UT close to sell Berau Coal
Wednesday, July 31 2002 - 06:15 PM WIB
?UT is in final negotiations to close the deal with a local investor. If things run well, sales and purchase agreement is expected to be signed within weeks,? said the source.
The source, however, declined to reveal identity of the buyer. The source also declined to reveal the price, but said it would be below UT?s bottom expectation of US$ 60 million.
In its report to the Jakarta Stock Exchange released Wednesday, UT admitted that it was in negotiation with potential buyer to sell its entire 60 percent stake in Berau Coal.
UT is in desperate need of cash to pay for its debt that will mature late this year. UT had been offering its shares in Berau since last year.
Earlier, UT?s corporate secretary Tjandrawati Waas said that it might cancel Berau Coal?s divestment if the price was too low. Several companies, including BHP Billiton, PT. Tambang Batubara Bukit Asam, Glencore and Strait Resources had conducted due diligence on Berau Coal, but later withdrew for unknown reasons.
BNP Paribas Peregrine is UT?s financial advisor in selling stakes in Berau Coal.
Berau Coal is one of the country?s top coal producers, producing 6.7 million tons in 2001. Other Berau?s shareholders are Armadian Tritunggal with 30 percent shares and Japan?s trading powerhouse Nissho Iwai with 10 percent. (alex)