PT Holdiko Perkasa (Holdiko) has announced the sale of its entire ownership in Indocoal, a group of coal mining companies. Raising $45.5 million, the stake was sold to PT Centralink Wisesa International (Centralink), a private Indonesian company operating in the coal business.
The deal marks Holdiko's second asset disposal for 2001 after the sale of its final stake in First Pacific last month. The company's main mandate is to sell Salim company assets and turn over the proceeds to IBRA, which in turn remits them to the government. Total gross proceeds from the two deals amount to more than Rp500 billion ($48.1 million), meaning that Holdiko is now over 50% of the way towards a Rp1 trillion goal.
"With regard to these spill-over assets, Holdiko expects to complete the sale of Indomaret, Sulfindo and Kerismas, as well as Indosiar's refinancing within the next couple of months," says Scott Coffey, Holdiko director.
Centralink won the Indocoal assets by submitting the highest bid. The assets comprise two coal producing companies, PT Indominco Mandiri and PT Kitadin Corporation, and two coal exploration companies, PT Trubaindo Coal Mining and PT Barasentosa Lestari. The mining companies' activities are located in East Kalimantan and in South Sumatra.
"We are pleased that our offer for Indocoal came out as the winning bid in this transaction," says Centralink's commissioner, Fredi Chandra. "We believe Indocoal is a high potential asset, which is why we aimed to submit the best offer. We are also proud to be able to take part in IBRA's and Holdiko's asset disposal programme as our contribution to the recovery of our economy."
"We are happy with the price Centralink submitted," says Dasa Sutantio, IBRA's director AMI. "Centralink's technical, marketing and financial support from its regional partner is a positive element in this transaction in terms of the expertise and capital it will bring for the development of Indocoal in the future."
The Indonesian Bank Restructuring Agency (IBRA) is an agency of the government of Indonesia established at the beginning of 1998 as the primary agency to oversee the rehabilitation of the financial sector. IBRA is authorized to take over and control troubled banks and dispose of their assets and collateral.
BNP Paribas acts as financial advisor to IBRA and Holdiko for this sale transaction.
Holdiko is a holding company established pursuant to the Shareholding Settlement Agreement between the Indonesian Bank Restructuring Agency (IBRA) and the Salim Group. Following the 1997-1998 banking crisis, the government took over many Salim companies as payment for liquidity assistance given by the Indonesian central bank to Bank Central Asia owned by the Salim Group.