Blumont to acquire Cokal

By Romel S. Gurky

Singapore-based investment company Blumont Group Ltd announced Friday it has reached agreement on the commercial terms of a proposed takeover bid for all the fully paid ordinary shares of ASX-listed coal mining firm Cokal Ltd for an aggregate consideration of approximately S$145.9 million.

?The consideration is to be satisfied by way of an allotment and issue of up to approximately 72.2 million new ordinary shares in the capital of the company, representing approximately 4.2% of the company?s enlarged share capital (based on issued share capital as at 4 October 2013) and approximately 2.7% of the company?s enlarged share capital after its completion of the rights issue of 1 rights share for every 2 ordinary shares,? Blumont said in a statement.

Cokal is an Australian listed company with the objective of becoming a metallurgical coal producer with a global presence. Cokal has interests in four projects in Central Kalimantan, Indonesia considered prospective for metallurgical coal.

Cokal is working on to get its Bumi Barito Mineral coking coal project into production in 2014.

Editing by Reiner Simanjuntak