Citra Kebun Raya to acquire Persada Indo Tambang

IDX-listed plantation firm PT Citra Kebun Raya Agri is transforming its core business by planning to acquire a majority stake in an iron ore mining firm.

Director Yudhi Asmara Yasmine says the acquisition target is PT Persada Indo Tambang which has concession in South Solok, West Sumatra.

?The objective is to increase the business prospect of our company and forms part of our strategy to transform our core business,? Yudhi said as reported by Bisnis Indonesia, adding that the company expected the acquisition could be completed next year.

The funding for the acquisition would be allocated from the proceeds of selling a majority stake in unit PT Horizon Agro Industry. In August, it sold 99.99% stake in Horizon to PT Rajawali Agro Andalan Nusantara for Rp 750 billion.

Persada Indo Tambang has an iron ore mining concession of 2,936 hectares with reserves estimated at 5,465 metric tons. (*)