Inovisi to acquire Kalimantan-based coal firm

Despite the current downturn in the global coal market, IDX-listed infrastructure company PT Inovisi Infracom Tbk plans to acquire a coal mining company which has mines in South and East Kalimantan for US$40 million, reports said Thursday.

Company Corporate Secretary Dria Soetomo was quoted as saying that Inovisi will issue exchangeable bonds worth $70 million via its Singapore-based subsidiary Code Wireless Pte Ltd to fund the diversification into coal mining.

The company to be acquired by Inovisi currently has been producing with a capacity of 3 million tons per year, Dria said, but did not disclose the identity of the targeted company, which has two coal mining subsidiaries with combined concession of 3,951 hectares and coal reserves estimated at about 113 million tons.

The acquisition of the coal mining company is projected to boost net profit by 90 percent until the end of this year.(*)