Benakat to complete acquisition of Mitratama this year

IDX-listed integrated energy company PT Benakat Integra Tbk said it hoped to complete the acquisition of a remaining 30 percent shares in coal port operator PT Mitratama Perkasa this year, Bisnis Indonesia reported on Monday.

Benakat Corporate Secretary Remanja Dyah Intansuri said that the due diligence process takes quite a long time, but said the acquisition ?will be completed this year.?

She added that the company has loan worth more than US$115 million from Credit Suisse AG to help finance the acquisition of the 30 percent shares in Mitratama worth about $120 million.

Benakat signed in March of this year a conditional sales and purchase agreement (CSPA) with Long Haul Holdings Ltd to acquire a 30 percent stake in Mitratama. Benakat, through its subsidiary PT Nusantara Pratama Indah, has already owned 70 percent shares in Mitratama.

Long Haul Holdings is acting as the broker for the sale of the 30 percent stake in Mitratama owned by IDX-listed PT Sumber Energi Andalan Tbk, which is controlled by India?s Tata Power Co. Sumber Andalan announced in February the plan to divest the Mitratama stake. In a filing with the Indonesia Stock Exchange, Sumber Andalan said that the weak coal price was the main reason for the divestment, while the company was also suffering from financial difficulties. (*)