Adaro to close barging firm acquisition next week

IDX-listed coal miner PT Adaro Energy Tbk announced Wednesday that negotiations are nearing completion in relation to the acquisition of a barging and ship loading company.

Adaro Energy will likely complete the acquisition, which will further integrate its operations, by next week, it said without giving detail of the target company.

Adaro Energy directly controls a portion of its coal mining and overland transportation and owns a port facility. With the acquisition of a barging and ship loading company, Adaro Energy will own at least a part of each of the critical pieces of the coal supply chain, which will reduce costs, lower risk, increase flexibility of production, increase control of transportation, and improve reliability.

Adaro Energy has appointed indpependent parties to assist in providing relevant reports and fairness opinions on the acquisition. The acquisition, which will have an equity value below US$100 million, will be funded out of Adaro Energy?s existing cash flows, it said. (alex).