Delta quits Berau Coal acquisition plan
Wednesday, May 19 2010 - 04:20 PM WIB
IDX-listed mining contractor PT Delta Dunia Makmur Tbk (Delta) announced on Wednesday that it has canceled plan to acquire majority shares of PT Berau Coal Energy (BCE), a company indirectly owns 90 percent shares at East Kalimantan coal mining firm PT Berau Coal.
The Company reported that acquisition plan was cancel after talks with Recapital Investment Group, which controls BCE, collapsed after seven weeks of negotiation.
Delta announced on March 30, 2010 it would acquire majority stake at BCE by issuing new shares in which Recapital will act as standby buyer.
Delta?s subsidiary PT Bukit Makmur Mandiri Utama (BUMA) is the main mining contractor for Berau Coal which is responsible for 70 percent of the latter?s production which reached 14.3 million tonnes in 2009.
The Company said the collapsed deal would not have any effect on BUMA?s mining contract in Berau Coal. (alex)