Antam, Bukit Asam decline to buy KPC shares
Thursday, February 24 2000 - 02:40 AM WIB
Mining firms PT Aneka Tambang (Antam) and PT Bukit Asam said that they refused to buy shares in coal mining firm PT Kaltim Prima Coal (KPC) because the amount of the offer was too small and expensive price.
"The amount of the offer is only 10 percent so we're not interested," said president of Antam Deddy Aditya Sumanagara.
President of Bukit Asam R.A. Sunardi also expressed similar comment, pointing out that KPC only offered a 2 percent stake at US$22.3 million.
"What can we do with a 2 percent stake," he said, adding that the company was ready to buy up to 30 percent shares as long as the price was right.
KPC is foreign coal mining firm operating in East Kalimantan. The company is obliged by government regulation to already divest 30 percent of its shares by the end of this month.
Director of coal mining at the ministry of mines and energy Soedjoko Tirtosoekotjo said that it had been agreed that KPC would offer the 30 percent stake to at least 11 national companies.
"And if until March 3 the company has not been able to sell the shares, the size of the divestment will increase to 37 percent," he said.
He said that the 30 percent stake was valued at $175 million.
State tin mining company PT Tambang Timah and the East Kalimantan Administration have previously turned down the offer because of the expensive price.(*)