Noble to acquire three RI firms

By Romel S. Gurky

SGX-listed Noble Group Limited announced that on Monday that its wholly-owned subsidiary, PT Equatorial Coal Abadi (ECA), a company incorporated in Indonesia, has agreed to subscribe three Indonesian firms.

Noble said in a statement that ECA would acquire 51 percent shares in PT Sriwijaya Inti Daya (SID).

It would also acquire 49 percent of PT Sriwijaya Multi Terminal (SMT), and 49 percent of PT Karimata Baru Terminal (KBT).

Upon completion of the share subscriptions (which are subject to obtaining customary regulatory approvals), SID will become an indirect subsidiary of the company and each of SMT and KBT will become associated companies of the company.

The company said the total consideration for the SID subscription, the SMT subscription and the KBT subscription are US$3.5 million, US$1.5 million and US$2.5 million respectively, and was agreed on a willing-buyer, willing-seller basis, taking into account, inter alia, the future business development of SID, SMT and KBT. The consideration will be wholly satisfied in cash and funded from internal resources.

"SID, SMT and KBT will together form a fuel storage, supply and distribution network in the Sumatra and Java regions meeting demand from the palm oil, power, and mining industries," Noble said.

Based on the unaudited financial statements of each of SID,SMT and KBT as of March 23, 2015, the respective book value and net tangible asset value attributable to the SID subscribed shares, the SMT subscribed shares and the KBT subscribed shares were Rp 23 billion (equivalent to approximately US$1.76 million), Rp 29 billion (equivalent to approximately US$2.22 million) and Rp 55 billion (equivalent to approximately US$4.20 million).

Editing by Reiner Simanjuntak