Alam Karya to acquire E. Kalimantan coal firms

IDX-listed mining services firm PT Alam Karya Unggul Tbk plans to launch a rights issue next month to raise an estimated proceeds of Rp 151.8 billion to finance the acquisition of a coal mining firm and a coal trading company in East Kalimantan.

Alam Karya, which was formerly a plastic packaging firm but switched into coal mining services last year, plans to hold a shareholders meeting on October 10 to seek approval.

According to company prospectus released Thursday, about 26 percent of the rights issue proceeds will be used to finance the acquisition of PT Mentari Bakti Jaya Utama and PT Putera Abadi Sakti in East Kalimantan.

But the bulk of the proceeds, about 72.19 percent, will be used to repay the debts of the two acquisition targets. (*)