Adaro delays acquisition of Bhakti Energi

Publicly listed mining company PT Adaro Energy Tbk has delayed its plan to acquire a majority stake in another coal miner PT Bhakti Energi Persada this year amid uncertainty in coal prices in the international market, Kontan daily reported on Friday.

?We will focus on our existing coal mines,? the company?s corporate secretary Devindra Ratzarwin said.

In May, this year, Adaro Energy has signed an acquisition agreement with Bhakti Energy. Under the agreement, Adaro has two options. The first option allows Adaro to purchase convertible bonds worth US$500 million which could later be converted into a 51 percent stake in Bhakti. The second option, meanwhile, Adaro is allowed to swap Bhakti?s 79.8 percent shares which are held by PT Persada Capital Investama, PT Triputra Investindo Arya and Winarto?s family.

?The agreement is valid for three years. So, we still have time,? Devindra said. (*)