Plastic packaging firm switches to mining services

IDX-listed plastic packaging company PT Alam Karya Unggul Tbk has secured approval from the company?s shareholders to switch its core business to mining service after suffering financial losses for the last two consecutive years, Kontan daily reported on Tuesday.

Alam Karya?s Bambang Adhi Pratomo said in Jakarta on Monday that as part of the program, the company would acquire mining service company PT Borneo Mining Kontraktor (BMK) for about Rp 15 billion.

The actual acquisition cost is about Rp 1.57 billion. However, Alam Karya would also have to pay the company?s debts so that the total amount of the funds needed to pay the acquisition would reach a total of Rp 15 billion, Bambang said.

He said that Alam Karya would receive debts of about Rp 14.2 billion from Bright Broadway Group Limited to partly pay the transactions. The other funds for the payment will come from part of the proceeds from the divestment of PT Aneka Plastindo Yutama to PT Asia Prima Packaging (APP).

PT Borneo Mining Contractor, which is based in Samarinda, is engaged in coal trading, mining services and mining equipment rental. (*)