Indika acquires more shares in Kideco

Petromindo|Thomas

IDX-listed PT Indika Energy Tbk said together with its wholly-owned subsidiary PT Indika Inti Corpindo, the two have entered into separate Share Purchase Agreements with each of Samtan Co., Ltd. and PT Muji Inti Utama, respectively, to purchase 40 percent of coal firm PT Kideco Jaya Agung from Samtan and 5 percent of Kideco from Muji for an aggregate total consideration of US$677.5 million.

Indika Energy said in a statement Monday that subject to fulfilment of terms and conditions, upon closing, Indika Energy will become the majority shareholder with 91 percent equity ownership in Kideco and Samtan will retain a 9 percent stake.

Indika Energy said it has built an integrated business portfolio in energy resources, services, and infrastructure. "With its substantial coal reserves, resources, and operational excellence, Kideco will continue to serve as Indika Energy's sustainable growth foundation. This transaction will further strengthen Indika Energy's position in the energy business value chain," said Arsjad Rasjid, President Director and Group CEO of Indika Energy, in the statement.

With the assumption of control of Kideco, Indika Energy said it will further enhance synergies within its group subsidiaries such as its contract mining company, PT Petrosea Tbk. and coal transportation and logistics company, PT Mitrabahtera Segara Sejati Tbk.

Indika Energy said the transaction is expected to complete in the fourth quarter of 2017, subject to satisfactory fulfilment of the terms and conditions, as well as regulatory approvals set out in the Share Purchase Agreements.

Editing by Reiner Simanjuntak