Guthrie Bhd. seeks IBRA clarification

Sat, 17 Feb 2001 | Source: DJ

KUALA LUMPUR (Dow Jones): Malaysian plantation company Kumpulan Guthrie Bhd. on Friday said it will request the Indonesian Bank Restructuring Agency, or IBRA, to clarify a statement that Indonesia may cancel a planned sale of plantations to the company.

Kumpulan Guthrie was responding to a recent article in local daily Business Times that said Indonesia may cancel the sale of $350 million worth of palm oil plantations to Kumpulan Guthrie owing to opposition from Indonesia's parliament.

"To date, IBRA has not given any notification that it is unable or unwilling to complete the transaction," Kumpulan Guthrie said in a statement to the Kuala Lumpur Stock Exchange.

The Business Times report cited Indonesia's Finance Minister Prijadi Praptoshardjo as saying the deal may be canceled, but in a subsequent report, the Business Times cited Praptoshardjo saying he was committed to the deal.

He reportedly said: "I think we must be tactful as calling off the deal would affect our credibility as we badly need foreign investment."

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