Altura plans to spin-out its RI coal assets
Tuesday, November 18 2014 - 05:15 AM WIB
ASX-listed Altura Mining Limited announced Tuesday its planned spin-out of its coal assets in Indonesia into a new Singapore-based vehicle (Newco), which is intended to launch initial public offering (IPO) and to be listed on the SGX-ST Catalist next year to raise funds to help finance the development of the coal mines.
The Newco will have a new board and Altura, which will be a controlling shareholder (as defined by the SGX-ST), is expected to hold two of the five board positions, including the Chairman's role, Altura said in a statement.
Currently Altura holds about one third stake in Delta Coal mine in East Kalimantan and a 70 percent stake in Tabalong Coal project in South Kalimantan, Indonesia. Altura and its partners plan to inject 100 percent of Delta Coal and a minimum of 70 percent of Tabalong Coal into the Newco.
Altura?s final shareholding in Newco will depend on the valuation of the coal assets and the ultimate capital raising, the statement said.
?Subject to the approval of the draft Offer Document by the SGX-ST, the IPO launch of Newco is proposed for early 2015,? Altura said.
A separate SGX listing of Newco, together with funds raised as part of the listing, will allow for development of the Tabalong Coal Project through to production, progression of the exploration programs for both projects, and strengthening of the balance sheet of the existing producing Delta Coal mine, the company explained.
?Altura believes the consolidation of its coal assets into a separate coal focused entity based in Singapore will allow for recognition of Altura's investment in these Indonesian coal assets, provide a platform to build on the existing Delta Coal business, and give management the financial resources required for the development and further exploration of the Tabalong Coal project,? it said.
The Newco shareholder group has appointed an issue manager along with legal, financial and technical consultants in order to achieve the objective of the proposed listing.
Editing by Reiner Simanjuntak