Adaro hopes to complete acquisition talks with EGAT in two months
Tuesday, November 8 2016 - 01:11 AM WIB
IDX-listed coal giant PT Adaro Energy Tbk hopes to complete talks within the next one or two months with EGAT International Co over the latter?s plan acquire up to 12 percent shares in the former?s subsidiary PT Adaro Indonesia.
?God Willing, closing to be reached within one or two months,? said Adaro Energy President Director Garibaldi Tohir on Monday.
He said that EGAT International, a subsidiary of state-owned Electricity Generating Authority of Thailand (EGAT), is seeking to acquire shares in Adaro Indonesia as part of strategy to help ensure long-term energy supply in the country, which is planning to develop massive coal-fired power plants in the eastern part.
Garibaldi said that EGAT requires coal with calorific value of 4,500-4,800 kcal/kg, which are the CV specification of coal produced by Adaro. He added that not many coal miners in Indonesia could provide coal in long-term supply for 25-30 years.
He declined to provide further details including the value of the planned acquisition as talks are still in progress with EGAT, which requires Thai?s government approval to realize the acquisition.
This portal previously reported that the transaction value is estimated at US$325 million. EGAT plans to pay the acquisition in two stages, with the first $164 million to be made this year, and the second between 2022 and 2027.
Editing by Reiner Simanjuntak