PSL Holdings cancels acquisition of Sinar Wijaya Pratama

By Peni Pedriawan

SGX-listed PSL Holdings Limited recently stated it has decided to terminate the conditional sale and purchase agreement dated June 9 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.

"As part of the company?s due diligence, a drilling program was carried out to estimate the quantity of coal resources in the SWP Concession Area. Based on the findings of the drilling, the estimated quantity of coal deposits was not to the satisfaction of the company," it said in a statement made available at the exchange.

Accordingly, PSL had on 8 February 2013 exercised its right of termination, in which the agreement shall terminate on that date and the vendors are obliged to refund the deposit to the company within fourteen (14) business days of the termination of the agreement.

Editing by Er Audy Zandri