Geo Energy signs agreement to purchase Borneo Bara
Monday, February 29 2016 - 03:47 PM WIB
SGX-listed Geo Energy Resources Limited announced on Monday that it has entered into a conditional sale and purchase agreement on Feb. 29, 2016 with Sunrise Wealth Success Limited for the acquisition of ordinary share(s) representing 100 percent shareholding interest in Borneo Bara Resources Pte Ltd (the Ultimate Holding Company).
Through various intermediate holding companies, the Ultimate Holding Company indirectly holds an effective equity interest in PT Parisma Jaya Abadi (PJA or the target company) of 79.91 percent. The proposed acquisition enables Geo Energy to collectively own the entirety of this interest.
As at the date of the announcement, Samarinda-based PJA is the holder of a coal mining concession. PJA holds a Production Operation Permit (IUP-OP) in accordance with Keputusan Bupati Kutai Kartanegara No. 540/1736/IUP-OP/MB- PBAT/XII/2009, dated Dec. 10, 2009. The concession area is situated at Kedang? Murung and Lebak Mantan, Kota Bangun and Muara Wis district, Kutai Kartanegara regency of East Kalimantan province The IUP covers approximately 5,000 ha of concession area with an estimated mineable coal tonnage of 1.11 million tons, and an estimated calorific value of 6,700-8,1001? kcal/kg, measured on an air-dried basis.
PT Borneo Bara Sentosa (BBS) is based in Samarinda.? BBS has an authorized capital of Rp. 2,000,000,000.00 and issued and paid up capital of Rp.? 2,000,000,000.00 divided into 10,000 shares each with nominal value of Rp. 200,000.00. BBS holds 400,000 ordinary shares in the capital of PJA, representing approximately 80.00 percent shareholding interest in PJA.
PT Borneo Bara Indah (BBI) is based in Samarinda, and holds PMA status as at the date of this announcement. BBI has an authorized capital of Rp. 12,000,000,000.00 and issued, and paid up capital of Rp. 12,000,000,000.00 divided into 60,000 shares each with nominal value of Rp. 200,000. The company holds 9,999 ordinary shares in the capital of BBS, representing approximately 99.99 percent shareholding interest in BBS.
The Ultimate Holding Company is a company incorporated in Singapore having its registered office at 10 Anson Road #06-17 International Plaza, Singapore 079903. The Ultimate Holding Company has a share capital of one Singapore Dollars (S$ 1.00) divided into 1 share. The Ultimate Holding Company holds 59,940 ordinary shares in the capital of BBI, representing approximately 99.9 percent shareholding interest in BBI.
On 24 September 2013, Geo Energy?s subsidiary, PT Mitra Nasional Pratama (MNP) entered into a mining services contract with PJA. On the same day, Geo Energy?s subsidiary, Geo Coal International Pte. Ltd. (GCI) entered into a coal mining cooperation agreement with PJA. The details of this relationship between Geo Energy and PJA have been previously disclosed?? in Geo Energy?s announcement dated Sept. 24, 2013, and in the S$300,000,000 Multicurrency Medium Term Note Programme Information Memorandum dated 30 June 2014.
Editing by Johannes Simbolon