Malaysia?s Techventure eyeing control at S. Kalimantan coalmine

Bursa Malaysia-listed firm Techventure Berhad (TVB) said Monday its 51 percent subsidiary TVB Global Marketing Sdn. Bhd. had made an offer to acquire 30 percent stake in TNB Coal International Ltd. (TCIL) from Nik Sallehuddin bin Nik Hussin for cash subject to terms and condition to be negotiated.

TVB had also made similar offer to acquire up to 70 percent stake in TCIL held by Malaysian state utility firm Tenaga Nasional Berhad (TNB) on the same basis.

TCIL, through its subsidiary P.T. Dasa Eka Jasatama (incorporated in Indonesia), is principally involved in the business of a mining contractor which includes mining, producing and transporting coal from several mine sites in South Kalimantan, Indonesia. TNB Coal's subsidiary holds the exclusive mining and marketing rights to mine, exploit and sell coal extracted from five concession areas in South Kalimantan.

TNB Coal is presently supplying coal to TNB Fuel Services Sdn Bhd, a subsidiary of TNB under an offtake contract dated 30 December 2002, for a period commencing from 1 January 2003 and is deemed perpetual until coal reserves are exhausted.

TVB in March had entered into the similar memorandum of agreement (MoA) last March with both Nik Sallehuddin and TNB to acquire 100 percent shares of TCIL for US$36.5 million, but said both parties had agreed to allow the MoA to lapse (alex)