ACE becomes indirect controlling owner of Berau Coal

By Romel S. Gurky

IDX-listed coal giant PT Berau Coal Energy Tbk said that British Virgin Islands-registered investment firm Asia Coal Energy Ventures Ltd (ACE) has become the new indirect controlling owner of the company.

Berau Coal said in a statement Wednesday that the change in the indirect controlling ownership of the company comes after ACE acquired a total of 94.19 percent stake in LSE-listed Asia Resource Minerals Plc (ARMS) via general offer, which was completed on July 15.

ARMS, which was co-founded by European financier Nathaniel Rothschild, owns 84.7 percent stake in Berau Coal, Indonesia?s fifth largest coal mining company, with estimated reserves of 512 million tons.

ACE is a company owned by Indonesia?s well-diversified Sinar Mas Group.

ACE offered the ARMS shares at 56 pence each, higher than its previous offer at 41 pence, valuing the entire shares of ARMS at about US$207.8 million. ACE has also promised to inject $100 million into ARMS, and restructure Berau Coal?s $950 million bonds, of which $450 million matured on July 8 and the remainder in 2017.

Editing by Reiner Simanjuntak