Cakra plans to acquire oil, gas services company
Wednesday, June 21 2017 - 02:39 AM WIB
IDX-listed mining firm PT Cakra Mineral Tbk said it plans to acquire an oil and gas services company this year as part of diversification strategy to help improve future revenue.
Cakra Corporate Secretary, Dexter Sjarif Putra told Petromindo.com on Tuesday that the company has allocated Rp 100 billion to help finance the acquisition program.
Dexter declines to disclose the identity of the acquisition target, but he said that the oil and gas services company has an extensive 90 years of experience in the industry. He expected the acquisition process to be concluded in the second semester of this year. ?Due diligence is still in progress. If everything goes well, the acquisition can be concluded this year,? he said, adding that if the planned acquisition is realized, the new business would help improve Cakra?s future income.
Cakra?s current source of revenue is from the sale of zircon sands ore, about 80 percent of which goes to the export market particularly China. The company was forced to stop export of nickel and iron ores in early 2014 following the introduction of export ban on raw mineral ores by the government.
The company last year suspended its ferronickel and nickel pig iron smelter projects due to the weak commodity price environment.
Editing by Reiner Simanjuntak