Plastics maker to acquire E. Kalimantan coal miner

By Romel S. Gurky

IDX-listed plastics and packaging producer PT Sekawan Intiprima Tbk plans to acquire RITS Ventures Ltd, the controlling owner of an East Kalimantan coal miner, for Rp 5.7 trillion.

To help finance the planned acquisition, Sekawan said in a statement issued on Tuesday that it would launch rights issue, raising Rp 5.64 trillion.

It said that the company would hold a shareholders meeting on April 17 of this year to seek approval for the planned rights issue and the sale of old assets.

RITS Ventures owns 66.5 percent of PT Indowarna Bara, which owns a 5,000 hectares coal concession in West Kuta, East Kalimantan, with coal resources estimated at 433 million tons, and with calorific value of 4,800-5,500 kcal/kg.

PT Perdana Karya Perkasa Tbk, another publicly-listed firm, failed an earlier attempt to acquire RITS Ventures after the stock market authority declined to approve the company?s rights issue plan on grounds that it would cause massive dilution effect to public shareholders, which own 40 percent shares of the company.

Editing by Reiner Simanjuntak