PTBA to audit 3-5 acquisition targets
Wednesday, March 22 2017 - 07:47 AM WIB
Petromindo
IDX-listed coal giant PT Bukit Asam Tbk (PTBA) is currently conducting due diligence process on potential acquisition targets as the company seeks to expand its coal reserves.
PTBA Finance Director Achmad Sudarto said on Wednesday that the company plans to carry out due diligence on 3-5 coal firms, including one based overseas.
?Acquisition is not easy, but there will be 3-5 (potential acquisition targets),? he said, adding that the company hopes to complete one acquisition this year. He declined to provide further details about the planned coal mining acquisition.
Sudarto said previously that the company was looking to acquire at least 51 percent interest in the targeted coal mining firm, and must have minimum reserves of 100 million tons. He said that PTBA?s coal reserves currently stood at 3.3 billion tons, with resources of 8.3 billion tons. He said that PTBA has allocated Rp 5 trillion for capital expenditure this year, part of which to be used to finance coal mine acquisition.
Elsewhere, Sudarto said the company was also interested in entering crude palm oil (CPO) production which can be converted into biodiesel.
Editing by Reiner Simanjuntak