Borneo plans to acquire Samin Tan?s RACL

IDX-listed PT Borneo Lumbung Energi & Metal Tbk plans to acquire Ravenwood Acquisition Company Limited (RACL), a company owned by Indonesian coal tycoon Samin Tan, Kontan daily reported on Monday.

The paper said that the acquisition plan is indicated by the management in the company?s September 2013 financial report.

Samin is also the controlling owner of Borneo. RACL plans to acquire a 23.8 percent stake in London-listed mining firm Asia Resources Minerals Plc (ARM), formerly known as Bumi Plc, as part of planned separation of ARM with the Indonesian Bakrie family.

The tycoon claimed to have obtained funding commitment from Raiffeisen Bank International AG to help finance the US$223 million acquisition.

?The company will consider the (acquisition) option in due time,? Borneo said in the report. The paper, however, questioned where Borneo will get the necessary funding to acquire RACL considering its cash reserves is only about $114.94 million. (*)