UT struggling to get favorable price for Berau Coal

JSX listed heavy equipment maker United Tractors (UT) said on Wednesday that the company is delaying announcement of the winning bidder for its 60 percent stake in East Kalimantan based coal mining firms PT Berau Coal because new bidders had expressed interest to acquire the stakes.

?Our financial advisor BNP Paribas has advised us to delay the process because there are several new bidders express their interests,? said Tjandrawati Waas, UT?s investors relations head told Petromindo.Com.

She refused to name the new bidders, but industry sources said Thai mining giant Banpu Plc and investment house Saratoga Investment Limited are among the new bidders.

The four first bidders are state coal mining firm PT Tambang Batubara Bukit Asam, Anglo-Australian resource giant BHP Billiton, Australia?s Strait Resources and Glencore Australia Coal.

However, earlier, an executive from PT Astra International Tbk, parent company of UT said three companies had dropped their bids shortly after their completed their due diligence audit on the coal-mining firm.

Tjandrawati declined to comment on the matter.

Industry sources said that the remaining bidders had offered price and condition that far below United Tractor?s expectation and that might cause the company to cancel the divestment.

Tjandrawati doid not rule out the possibility.

?If we can not get satisfactory price, we might as well cancel the divestment. We are currently studying the option and means to pay for our debts if this divestment does not proceed,? she said.

UT?s debt which matures this year amounted to US$100 million and the sources said the company is expecting to get at least US$ 80 million from the sale of Berau Coal.

Berau Coal is one of the country?s top coal producers, producing 6.7 million tons in 2001. (alex)