Malaysia?s Tenaga acquires S. Kalimantan coalmine

Malaysian power utility Tenaga Nasional Bhd. said Tuesday its TNB Coal International Ltd. unit will acquire Malaysian company Dynamic Acres Sdn. Bhd.

The new agreement replaces an earlier arrangement for TNB Coal to acquire 70 percent of Dynamic Acres, which owns a coal-mining unit in Indonesia.

The deal entails the incorporation of TNB Coal, currently a joint venture company between Tenaga and Dynamic Acres, as a special purpose vehicle in Mauritius.

TNB Coal will then acquire the entire equity interest in Dynamic Acres for $85 million, raising 80 percent of the purchase price via "offshore non-recourse financing," Tenaga Nasional Bhd. said in a statement.

Dynamic Acres controls 99 percent stake of PT. Dasa Eka Jasatama, a producing coal mine in South Kalimantan with current production of around 100,000 tons per month. (alex)