Mitra Rajasa signs MoU to acquire coal mining companies for $40 million

IDX-listed oil, gas services company PT Mitra Rajasa Tbk. has signed a memorandum of understanding (MoU) to acquire two coal mining companies in Musi Banyuasin, South Sumatra as part of its expansion in the country?s mining sector.

Under the agreement signed in Jakarta on March 16, 2009 Mitra will acquire the entire stake in PT Realita Jaya Mandiri and PT Masindo Artha Resources for about US$40 million.

PT Realita operates a coal KP concession of about 1,598 hectares, which has started production, while Masindo owns two coal KP concession areas of 5,600 hectares and 4,400 hectares, respectively. Reserves at the three concessions are estimated at 100 million tons.

Mitra?s Chief Commissioner Tito Sulistio said in Jakarta that the company had appointed appraising company Martokusumo and Co to assess the fair value of the acquisition.

?We will use internal funds and bank loans to finance the acquisition,? he said, the company would also soon hold an extraordinary shareholders meeting to approve of the acquisition plan.

The firm will ask for the shareholders' approval for its plan to change its name into PT Mitra International Resources. (denny)