UT mulling to retender stake in Berau Coal

JSX-listed heavy equipment maker PT. United Tractors Tbk (UT) said on Monday it will retender its 60 percent stake in East Kalimantan-based coalminer PT. Berau Coal only after it has finished restructuring its debts, Bisnis Indonesia daily reported.

?There is possibility that Berau Coal shares will be retendered,? UT?s investor relations manager Thomas H Aslim told the paper Monday.

Aslim said the UT management was still in negotiations with its creditors.

UT said last month that it had dropped its deal with a local consortium led by PT. Intra Karsa Korporindo which had submitted its bid to buy UT?s 60 percent stake in Berau Coal.

The deal was dropped because Intra Karsa failed to make payment for Berau Coal shares by December 15, the previously agreed upon deadline.

With the deal failure, UT said last month it would not seek new buyers until March 2003 when its creditors will decide on debt restructuring schemes.

Berau Coal is one of Indonesia?s top coal producers. Other shareholders are Armadian Tritunggal with 30 percent and Japan?s trading powerhouse Nissho Iwai with 10 percent.

Under government regulations, which allow foreign ownership in a company up to 49 percent, UT still can sell 39 percent of its stake in Berau Coal to foreign investors. (*)