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legal actions have been withdrawn.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