Ancora revises revenue target due to coal mine acquisition uncertainty

Coal mining company PT Ancora Indonesia Resources Tbk has revised down its revenue target for this year amidst uncertainty over the company?s plan to acquire coal miner PT Raja Kutai Baru Makmur in East Kalimantan.

The company?s finance director Aulia M. Oemar said in Jakarta on Monday that the company?s revenue target was revised to last year?s level because it was unlikely that the company would be able to conclude the acquisition of Raja Kutai this year.

The company?s total revenue was previously projected to increase by 25 percent to Rp 1.7 trillion. ?Our revenue will be the same with the previous year because the initial target had included the additional production from Raja Kutai,? he added.

Ancora planned to acquire 50.6 percent of Raja Kutai shares from its sister company Ancora Energy for US$12 million. Ancora Energy at present holds a 58 percent stake at Raja Kutai.

Ancora Indonesia had been unable to conclude the acquisition because the company had delayed its plan to issue rights shares to finance the acquisition. ?Because of the delay in the rights issue, we need to find bank loans to finance the acquisition,? he was quoted as saying by Kontan business daily. (*)