Federal divests interest in PTGFI

By Romel S. Gurky

Courtesy of Gasuma

SGX-listed Federal International (2000) Ltd said that Federal Hardware Engineering Co. Pte Ltd (FHEC), a wholly-owned subsidiary of the Group, has completed the disposal of its 12 percent interest in PT Gasuma Federal Indonesia (PTGFI) for cash consideration of US$1.88 million to the existing shareholder of PTGFI.

The company said in a recent statement that the cash consideration was arrived based on willing buyer and willing seller basis after taking into consideration of the carrying value of the investment of S$1.4 million recorded by the group. The group has recorded a gain on disposal of S$ 1.3 million. The disposal is part of the group?s process to focus on its core businesses.

The investment in PTGFI was acquired under the terms of an option agreement made on March 21, 2011. Under the option agreement, FHEC acquired 12 percent interest in PTGFI by paying an exercise price of US$1. PTGFI operates an integrated gas processing and power plant in Tuban, East Java, Indonesia.

Editing by Reiner Simanjuntak