DSS shareholders approve Singaporean firm takeover
Wednesday, April 8 2015 - 01:10 PM WIB
Shareholders of IDX-listed PT Dian Swastatika Sentosa (DSS) have approved the company?s plan to acquire United Fiber System Ltd. (UFS), an SGX-listed firm, through equity participation.
The approval was given during the shareholders? meeting at Hotel Pullman Jakarta, DSS said in a statement on Wednesday.
The shareholders? meeting also approved the company?s plan to transfer its shares in PT Golden Energy Mines Tbk. (GEMS, which represent 66.9998% of issued and paid-up capital of GEMS, to UFS.
?The transactions referred above are integrated and inseparable, and are to be executed by way of share swap between the GEMS shares owned by the company and the new shares issued by UFS at the value of S$1.88 billion,?
?The execution of the transactions is expected to be done by the end of April 2015. Soon after the execution of the transactions, UFS will do compliance placement to fulfill UFS minimum public float of 12%,? the company said.
On the completion of the transactions, DSS will become controlling shareholder of UFS with ownership around 94% before compliance placement or around 85% after compliance placement, and UFS will become controlling shareholder of GEMS with ownership of 66.9998%.
The transactions will give added value to shareholders as GEMS will be more known as one of leading coal players in Asia, which may increase access to more competitive funding sources and expand GEMS coal market.
DSS is a subsidiary of the Sinarmas group, engaged in energy and infrastructure buisnesses. DSS owns and operates four power plants located in Tangerang, Serang, both in West Java, and Karawang, in West Java with total capacity of 300 MW. It is in the final stage of construction of PLTU Sumsel-5 coal-fired power plant with capacity 2 X 150 MW through its subsidiary, PT DSSP Power Sumsel.
Currently, DSS is the direct holding company of GEMS, which is in the business of coal mining and trading.
GEMS has coal resource more than 2.1 billion tons and coal reserve of 639 tons with concessions located in South Kalimantan, Central Kalimantan, and Jambi. After the share swap, GEMS major shareholders will be UFS and GMR Coal Resources Pte Ltd, a leading group in energy and infrastructure business. UFS will soon change its name to Golden Energy and Resources Limited to reflect its core business.
?After a long journey, we are ready to mark a new milestone and open a new door to exciting future for DSS, UFS, and GEMS" said Hermawan Tarjono, Director & Corporate Secretary of DSS.
Editing by Johannes Simbolon