Atech Holdings to acquire coal mine in Kalimantan
Saturday, August 20 2011 - 04:37 AM WIB
The Australian company said recently that it had entered into a condition binding term sheet to acquire PT Apuah?s 60 percent shares. However, the proposed transaction is subject to various conditions precedent, including ATH completing due diligence investigations in respect of Apuah and Apuah being satisfied with the outcome of those investigations.
PT Apuah Kutai Langgong (Apuah) domiciled in Jakarta has full and exclusive rights to mine and sell thermal coal and acquire coal assets in Indonesia. The company operates 5,000-ha coal mine in Tapin and 1,200-ha in Tanah Bumbu, both in South Kalimantan.
If the proposed transaction proceeds, the proposed transaction will involve a change in the nature and scale of ATH?s current activities and accordingly, ATH will be required to re-comply with chapters 1 and 2 of the ASX Listing Rules and to obtain approval from ATH shareholders.
As consideration for the sale of the Apuah sale shares, ATH has agreed to issue Hj. Muhammad Abdullah MH and/or his nominees 200 million fully paid ordinary shares in the capital of ATH, at an issue price of A$0.20 per share.
Apuah has also granted ATH an option to acquire an additional 200 shares in the capital of Apuah for an exercise price of A$50m, with an exercise period of 2 years.
ATH has been granted a right to exclusively deal with and conduct due diligence investigations in respect of Apuah for a period of 60 days. This period may be extended for an additional 60 days at ATH?s discretion. ATH has agreed to pay Hj. Muhammad Abdullah MH and his associates A$500,000 as consideration for being granted this right.
If the proposed transaction proceeds, ATH, Apuah and Hj. Muhammad Abdullah MH and his associates will enter into a formal share sale agreement and any other documents necessary to give effect to the Proposed Transaction, satisfactory to the parties in all respects. (romel)