Low Tuck Kwong Negotiates Sale of PT Bayan Resources

Low Tuck Kwong, the owner of Indonesian coal mining giant PT Bayan Resources, is in negotiations to sell a majority stake in the $28 billion company. A consortium led by tycoon Andi Syamsuddin Arsyad, also known as Haji Isam, is the primary party in the talks. While other interested parties have emerged, no final agreement has been reached, and the sale price is expected to include a discount due to the company's limited free float.

PT Bayan Resources previously issued a statement to the stock market denying awareness of any takeover plans. If the deal is completed, it would end the decades-long leadership of Low Tuck Kwong and significantly expand the influence of Andi Syamsuddin Arsyad in the coal sector.

The potential acquisition takes place during a period of industry turmoil under President Prabowo Subianto. The Indonesian government has slashed production quotas to boost prices and increased tax audits for miners. Additionally, the new sovereign wealth fund, Danantara, has pressured tycoons to purchase below-market interest rate patriot bonds.