Thursday, April 16, 2009

Sponsors To Sell Stake In Adaro

Financial sponsors are looking to sell at least a 17 percent stake in PT Adaro Energy Tbk, Indonesia's largest coal producer by market value, to strategic investors, sources told Reuters.

Based on the firm's share price, the stake is worth about $500 million.

Goldman Sachs, which has a 9.94 percent stake in Adaro, is "coordinating" the share sale, said a source with direct knowledge of the deal.

Goldman declined to comment and Adaro was not immediately available to comment.

Financial sponsors that included Citigroup (C.N), hedge fund manager Farallon, the Government of Singapore Investment Corp (GIC), Kerry Coal and Goldman bought at least 25 percent of Adaro after an initial public offering last year, banking sources and analysts said.

Not every sponsor is looking to exit Adaro, as GIC and Kerry Coal, a firm linked to Malaysian billionaire Robert Kuok, will likely retain most of their stake, said a second source familiar with the deal.

SourcE: Reuters

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