PSL Holdings acquires Sinar Wijaya Pratama

By Romel S. Gurky

Singapore-listed civil engineering service firm PSL Holdings Limited recently stated it has entered into a conditional sale and purchase agreement dated 8 June 2012 for the acquisition of 2,498 shares in the issued capital of PT Sinar Wijaya Pratama (SWP), representing approximately 99.9% shareholding interest in SWP, from Addy and Maryanto, previous owners of the shares.

A limited liability company based in Pekanbaru, SWP has an issued share capital of nominal value of Rp. 2,500,000,000, comprising 2,500 ordinary shares, of which 1,750 SWP Shares are held by Addy and 750 by Maryanto.

Under the terms of the Agreement, the consideration shall be a multiple of the reserves, from the results of an independent technical report, and the fee of US$6.00 per metric ton of coal. The consideration to be paid by the group, it said,cannot be determined as at the date of signing of the agreement as the independent technical report has yet to be initiated.

The company will appoint a suitable and competent expert to prepare an independent technical report in compliance with the Australasian Code for Reporting of Mineral Resources and Ore Reserves in due course to determine the quantity and technical specifications of the reserves in SWP.

SWP is the holder of a Production Operations IUP for ten year terms from April 4, 2011 covering a concession area of 2,127 ha located in the District of Limun, Sarolangun Regency, Jambi. Preliminary indications of the calorific values of the coal are approximately 5,900 kcal/kg on an as received basis, however the company has not yet commenced the coal production operations.

Editing by Er Audy Zandri