UPDATE:Goldman,Other Investors Sell 3.9% Of Adaro For IDR1.5 Trillion

Investment bank Goldman Sachs (GS) and other international investors sold a 3.9% stake in PT Adaro Energy (ADRO.JK) at IDR1,230 a share in a block trade in the morning session, according to a term sheet seen by Dow Jones Newswires Wednesday.

The sellers were Adcorp Holdings, Goldman Sachs SSG-Jade Dragon (Mauritius) Ltd., Goldman Sachs Strategic Investments (Asia) L.L.C. and GIC Special Investment-Salween Investment Pte Ltd.

According to the term sheet, the companies sold 1.25 billion shares of Adaro at a 10.2% discount to Tuesday's closing price of IDR1,370.

It said the sellers raised IDR1.539 trillion ($150 million) from the sale of the Adaro stake.

The sale of the 3.9% stake is part of some international investors' plan to sell a 17% stake in Adaro.

Goldman Sachs, which has a 9.94% stake in Indonesia's second largest coal miner by output, is acting as the sole book runner for the stake sale.

International investors, which include Citigroup (C), hedge fund Farallon's unit Noonday Asset Management, the Government of Singapore Investment Corp., or GIC, Kerry Coal and Goldman together hold at least a combined 25% stake in Adaro.

"We are unaware of any unusual activities of the shareholders," an Adaro spokesman told Dow Jones Newswires.

The company said in October that some international institutional investors with a significant block of Adaro shares had approached the company's founding and controlling shareholders and offered to sell back their shares for $250 million. But they failed to reach an agreement on the price.

The company's top five shareholders are PT Saratoga Investama Sedaya with a 14.93% stake, PT Triputra Investindo Karya with 13.34%, PT Persada Kapital Investama with 11.01%, Chief Executive Garibaldi Thohir with 7.8% and PT Trinugraha Thohir with 7.8%.

At 0725 GMT Wednesday, Adaro shares fell 4.4% to IDR1,310 on disappointment that the stake sale was executed below the market price, while the overall market rose 1.2%.

-By Edhi Pranasidhi and Amy Or; Dow Jones Newswires; 62 21 3983 1277; [e-mail]