Arbitration goes ahead, KPC divestment status quo
As ICSID had accepted (Bisnis Indonesia today) East Kalimantan province appeal for arbitration process over divestment of PT Kaltim Prima Coal (KPC) last week, the agency might impose status quo on PT Bumi Resources Tbk's plan to divest up to 30% shares in KPC scheduled for accomplishment early next month.
East Kalimantan provincial administration has taken its case against coal mining firm PT Kaltim Prima Coal (KPC) to the international arbitration through the Washington-based International Center for Settlement of Investment Disputes (ICSID) in April 5, 2006 during the due diligence process of KPC and Arutmin Indonesia divestment to PT Borneo Lumbung Energi at USD3.2 billion. Borneo failed to close the deal in August.
At the moment, six investors are conducting due diligence. If the arbitration process goes ahead, the status quo will be maintained until the case is over. It would potentially postpone the divestment of KPC's 30% share.
But Bumi Resources president Ari S Hudaya told JSX today that the arbitration process will not change Bumi's ownership in KPC.
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East Kalimantan provincial administration has taken its case against coal mining firm PT Kaltim Prima Coal (KPC) to the international arbitration through the Washington-based International Center for Settlement of Investment Disputes (ICSID) in April 5, 2006 during the due diligence process of KPC and Arutmin Indonesia divestment to PT Borneo Lumbung Energi at USD3.2 billion. Borneo failed to close the deal in August.
At the moment, six investors are conducting due diligence. If the arbitration process goes ahead, the status quo will be maintained until the case is over. It would potentially postpone the divestment of KPC's 30% share.
But Bumi Resources president Ari S Hudaya told JSX today that the arbitration process will not change Bumi's ownership in KPC.
Labels: Bumi Resources, KPC
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posted by yosef at 8:44 AM
1 Comments:
Isn't this the same old case from 2003 when the East Kal government was on the wrong side of the original bid for KPC.
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