Interra named as standby buyer of Mitra Investindo?s rights issue

By Romel S. Gurky

Singapore-based investment holding firm Interra Resources Ltd, which has a number of oil and gas assets in Indonesia, could end up controlling 50 percent stake in IDX-listed granite mining firm PT Mitra Investindo Tbk if public investors fail to fully absorb the latter?s planned rights issue.

Mitra Investindo said on Wednesday that Interra, which is controlled by IDX-listed investment firm Saratoga Investama Sedaya Tbk, has been named as the standby of the entire new shares to be issued by the company.

Mitra plans to issue 641.61 million new shares via rights issue hoping to raise Rp 147.57 billion in proceeds, which the company said would be used to finance the acquisition of 90 percent stake in Goldwater LS Pte Ltd from Interra.

Goldwater is the parent of IBN Oil Holdico Ltd, which holds 100 percent interest of the Linda Sele Technical Assistance Contract (TAC) located in West Papua. As of last year, Linda Sele?s gross output reached 72,667 barrels.

Editing by Reiner Simanjuntak