KPC agrees to make share offer

KPC agrees to make share offer

JAKARTA: PT Kaltim Prima Coal (KPC), which operates a huge coal mine in Sangatta, East Kutai regency, East Kalimantan, said it had agreed with the government to proceed to sell 51 percent of its stake.

Under the agreement signed on Monday, KPC is valued at US$822 million and the company is to offer the 51 percent stake by March 31 this year.

"An offer of sale will be made concurrently to the provincial government of East Kalimantan, the East Kutai regency and other interested Indonesian parties pursuant to KPC coal agreement," the company said on Thursday.

Under the agreement, KPC will make the offer after all related legal actions have been withdrawn.

East Kalimantan recently dropped its lawsuit against KPC, which was filed at the Central Jakarta District Court last year. The province charged the company of purposely delaying the sale of its stake.

KPC is obliged under contract to sell up to 51 percent of its stake to either the Indonesian government, Indonesian companies or Indonesian citizens, after 10 years of operations. -- JP