United Tractors moves to repay debt

United Tractors moves to repay debt

JAKARTA: PT United Tractors said on Thursday it has sold its 60 percent stake in unlisted coal miner unit PT Berau Coal to a privately-owned company PT Indika Inti Corpindo.

United Tractors, which is 49 percent-owned by automotive concern PT Astra International, said the sale of Berau Coal is part of its plan to restructure its US$241 million debt.

It didn't say how much it expects to get for the stake sale.

The heavy equipment company said in a statement that all sale proceeds will be used to repay part of its debt that will mature this year.

The company said it also plans to issue rights shares to raise up to $75 million to help repay the debt.

The planned rights issue will pave the way for parent Astra International to inject around $40 million to prevent the dilution of the 49 percent stake in United Tractors, analysts said. -- Dow Jones