Alam Karya to divest heavy equipment rental unit
Saturday, June 27 2015 - 02:47 AM WIB
IDX-listed PT Alam Karya Unggul Tbk, an investment firm focuses on mining and mining services, plans to divest its heavy equipment rental subsidiary due to lingering downturn in the coal sector, and to acquire a hotel as part of diversification strategy.
Alam Karya President Director Bambang Adhi Pratomo said on Thursday the company has decided to sell PT Borneo Mining Contractor as its coal mining clients have terminated contracts earlier amid the lingering drop in coal price. As a result, revenue from heavy equipment rental could not cover cost.
The company said in a filing with the Indonesia Stock Exchange that it had signed a share sale and purchase agreement with businessman Soebali Sudji on May 18, which was later amended on Jun 4, to realize the divestment plan.
Bambang said at the company has been suffering losses since 2013 particularly as result of the coal mining meltdown. To help ensure sustainability of company income, it plans to acquire hotel operator PT Permata Nusantara Hotelindo.
Editing by Reiner Simanjuntak