Enel acquires 10% shares of Bayan Group

Italy utility firm Enel S.p.A through its wholly owned Dutch subsidiary Enel Investment Holding B.V. (EIH) has acquired a 10% shareholding of Kalimantan coal mining firm PT Bayan Resources Tbk for Euro 138 million via Bayan?s IPO on the Indonesian Stock Exchange.

The shares acquired by EIH will be subject to a lock-up period of 18 months from the closing date of the IPO, the company said.

On top of the acquisition of the 10% shareholding, the Enel Group, one of the Company?s top five customers by sales revenues in 2007, has also executed - through Enel Trade S.p.A., a wholly-owned Italian subsidiary of Enel S.p.A. ? a coal supply agreement with Bayan which provides that the latter will supply a specified amount of coal until December 2019.

Bayan is the eighth largest coal producing group in Indonesia in terms of production volume in 2007, with integrated coal mining, processing and logistics operations. The Company is primarily engaged in the business of surface open cut mining of thermal coal and has a diversified product portfolio that ranges from bituminous coal, with high calorific content, to sub-bituminous and semi-soft coking coal.

The Company?s economic and financial performance for the year ended December 31, 2007 showed revenues of US$374.4 million, a gross profit of $104.8 million and net income of $27.5 million. Volume of coal sales in the same year reached 7,084 million tons.(alex)