Indika completes Kideco acquisition

IDX-listed coal mining and energy company PT Indika Energy Tbk and its subsidiary PT Indika Inti Corpindo completed on Friday the acquisition of additional 45 percent shares in East Kalimantan coal firm PT Kideco Jaya Agung.

Indika Group President Director and CEO Arsjad Rasjid said in a statement that Indika has completed all of the conditions as set out in the sale and purchase agreement, and has obtained government approval. The company has also completed the payment for the shares totaling US$517.5 million.

Indika Energy and Indika Inti purchased the shares from Samtan Co Ltd and PT Muji Inti Utama. The acquisition has turned Indika to become the controlling owner of Kideco, the country?s third largest coal miner, with combined shares of 91 percent. Meanwhile, Samtan maintains its 9 percent ownership in Kideco.

?Kideco has been the largest contributor to the performance of Indika Energy. With Kideco now becoming a consolidated subsidiary (of Indika) we?ll continue to optimize strategic value and synergy within the group,? Arsjad said.

Arsjad said in the January-September period of this year, Indika booked a 22 percent increase in revenue to $694.7 million from $567.7 million in the corresponding period of last year, thanks to higher contribution from subsidiaries and stronger coal price.

Its engineering and construction services subsidiary PT Tripatra saw a 22.6 percent increase in revenue in the first nine months of this year, while its oil and gas and mining services company PT Petrosea booked a 21.8 percent increase in revenue. Kideco also provided higher contribution thanks to higher coal price.

With the higher contribution from key subsidiaries, Indika?s net profit in the first nine months of this year jumped to $81.4 million from $20.6 million in the same period of last year.

Editing by Reiner Simanjuntak