Bumi makes third acquisition in weeks

IDX-listed giant coal miner announced Wednesday it had signed Sales and Purchase Agreement (SPA) on January 5, 2009 with Indomining Resources Holdings Limited to acquire 89.4 percent shares of Pendopo Coal Limited, a company that indirectly controlled 94.9 percent shares of South Sumatra coal mining firm PT.Pendopo Energi Batubara (PEB).

Under the deal, Bumi will pay Rp228 billion (US$=Rp.11,000) in installment in 12 months and another Rp.1.077 trillion in 24 montsh after the signing of the SPA on condition that PEB has signed Power Purchase Agreement.

The Pendopo acquisition is the third acquisition Bumi undertook within a weeks. Earlier Bumi has announced acquisition of East Kalimantan coal miner PT.Fajar Bumi Sakti and 44 percent shares of mining contractor PT.Darma Henwa.

Industry sources said that the three companies are controlled by the Bakrie family, which also controls Bumi Resources.

In December 2008 Darma Henwa said it has acquired 11 percent shares in PEB for US$5.5 million from Indomines Holdings Limited and has option to increase share to 50-60 percent.

DH Power President Kaz Tanaka last year told Petromindo.Com that it was planning to build 2x600-MW mine-mouth power plant in PEB and might spend $1.2 billion to develop the project. The company might appoint Japanese firm Sumitomo Corp. as EPC contractor, he said. DH Power is a subsidiary of Darma Henwa. The entire electricity produced would be sold to state electricity firm, he said.

The plant is expected to come onstream in 2014. (alex)