Darma Henwa completes sale of Coal Vista
Monday, August 15 2011 - 04:57 AM WIB
The company announced today that the transaction has been finalized on August 11, 2011.
Coal Vista Resources was established on July 7, 2006, initially called Formosa Investments Limited. The company, based in Republic of Seychelles, changed its name to Coal Vista Resources on April 13, 2007.
Darma Henwa said the value of the transaction represents 23.8% of its equity. It said the transaction is considered material, but no need to seek approval from shareholders as it's less than 50% of the company?s equity.
The company said the divestment was decided as it wants to focus on its core business, namely as mining and energy contractor.
The proceeds of the sale will be used to repay the company?s debts, which ultimately improves its debt to equity ratio to 0.01x from 0.18x. Portion of the proceeds will be used for working capital and operational expenses.
Darma Henwa, controlled by the powerful Bakrie family, owns Coal Vista through its wholly-owned unit Prove Energy Investment Ltd and Vista Visa Ltd. Thionville Financier is a non-affiliated party.
In 2010, Coal Vista posted net profit of US$28.42 million, up from $23.94 million in previous year, while sales reached $44.67 million, up from $37.22 million in previous year. Coal Vista has total assets of $95,96 million as of end of 2010, but declined to $86.16 million at end of May, 2011. (roffie)