Benakat hopes to complete acquisition of Mitratama this year

IDX-listed PT Benakat Integra Tbk said it will continue with the long-delayed acquisition of the remaining 30 percent shares in coal infrastructure operator PT Mitratama Perkasa (MP) from IDX-listed PT Sumber Energi Andalan Tbk (ITMA), Kontan reported on Tuesday.

The paper quoted Benakat Integra Director Michael Wong as saying that the acquisition process is expected to be concluded before the end of this year. He said that the company is currently in the process of finalizing a new acquisition structure and mechanism.

Benakat signed a conditional sales and purchase agreement in 2014 for the planned acquisition, but has been delayed to due to a number of factors such as the lingering weak commodity price, and the protracted restructuring process at MP which requires approval of creditors.

The acquisition value is worth US$120 million. Long Haul Holding acts as the broker for the transaction. Benakat through subsidiary PT Nusantara Pratama Indah already have a 70 percent stake in MP. (*)