Cakra receives underwriting agreement from Sinarmas
Monday, June 1 2015 - 01:17 AM WIB
ASX-listed global metallurgical coal group Cokal Limited said it has been informed by IDX-listed mining firm PT Cakra Mineral Tbk (CKRA) that the latter has signed an underwriting agreement with PT Sinarmas Sekuritas for a planned US$100 million rights issue.
CKRA plans to launch the rights issue as part of funding sources to acquire the entire shares of Cokal, which operates huge coking coal project in Central Kalimantan.
Sinarmas Sekuritas is part of the well-diversified Sinar Mas Group.
?CKRA has also advised that the underwriting agreement is in customary form and normal terms for transactions for this size and type in Indonesia and is therefore subject to the transaction receiving regulatory and shareholder approval. CKRA advises that CKRA?s largest shareholder, Redstone Resources Pte Ltd is a party to the agreement, indicating its intentions in relation to the shareholders meeting as part of the rights issue process,? Cokal said in a statement.
Cokal and CKRA announced on April 29, 2015 that they have entered into a Bid Implementation agreement under which CKRA will make a conditional off market takeover bid for all of the shares in Cokal.
By obtaining the underwriting agreement, Cakra has achieved a significant milestone and in line with the timetable as outlined in the Bid Implementation Agreement announced on April 29, 2015. Cokal expects further details will be provided in the Bidder?s Statement.
Cokal Chairman and Chief Executive officer, Peter Lynch said, ?This is a very encouraging development and we are happy with the progress we have made to date?. ?The two parties are working steadily in a co-operative manner as we proceed through the detailed work required in the Bid Implementation Agreement.?
Editing by Reiner Simanjuntak