Rajawali Group eyes mining firms

Rajawali Group is planning to acquire two mining companies after it sold its entire 56.96% stake in local cigarette maker PT Bentoel International Investama to British American Tobacco (BAT) Plc.

From the transaction Rajawali will get fresh money around Rp 3.35 trillion (1US$ = Rp 10,200) and the company will use some of the proceeds to buy two mining firms and one plantation firm, the company?s development director Darjoto Setyawan said on Wednesday.

But he refused to give further details, only saying that one of the the targeted coal mining firms is located in East Kalimantan.

BAT acquired a total of 85% stake in PT Bentoel International Investama. It acquired the additional 28.04% shares from other investors. The entire transaction is worth $494 million. (*)