MITI sets up SPV for proposed disposal of granite quarry assets

By Romel S. Gurky

SGX-listed Interra Resources Limited said that its IDX-listed subsidiary PT Mitra Investindo Tbk (MITI) and PT Sanmas Mekar Abadi (PT SMA) have acquired special purpose vehicle (SPV) company in Indonesia called PT Bintang Mahkota Sukses (PT BMS) to facilitate the proposed disposal of the former?s granite quarry assets in Riau Islands Province.

?MITI and PT SMA have acquired a special purpose vehicle in the Republic of Indonesia called PT BMS, which will hold and operate the granite quarry. On completion of the proposed disposal, MITI will transfer all of its interest in PT BMS to PT SMA,? Interra said in a statement on Thursday.

?The company will continue with the completion of the proposed disposal and will make the necessary follow-up announcement upon the completion of the proposed disposal,? it added.

MITI entered into a conditional sale and purchase agreement (CSPA) dated November 16, 2015 with PT SMA for the proposed disposal by MITI of the granite quarry assets as it aims to focus on the oil and gas business in Indonesia.

MITI currently owns the Linda Sele oil and gas field, in West Papua, following the acquisition of 90 percent shares of Goldwater LS Pte Ltd from Interra Resources Ltd in 2014.

Earlier this month, MITI said it hoped to be able to complete the planned acquisition of 23.4 percent shares in PT Benakat Oil in the second quarter of this year, which will translate into an indirect holding of 21.79 percent of PT Benakat Barat Petroleum (BBP).

BBP is a limited liability company incorporated under the laws of Indonesia. Pursuant to an operations cooperation agreement (the Benakat Barat KSO) entered into between BBP and PT Pertamina EP on March 16, 2009, BBP holds an undivided 100 percent interest in the Benakat Barat KSO and has the rights and obligations to exploit, develop and explore for hydrocarbons in the Benakat Barat field in South Sumatra.

Editing by Reiner Simanjuntak