Real estate developer to spend $250m to buy Kalimantan iron ore mine
Tuesday, November 22 2011 - 05:50 AM WIB
Indonesia-listed real-estate developer PT Bumi Citra Permai Tbk plans to expand business into iron ore mining through acquisition of PT Gunung Besi Utama (GBU) from UAE-based firm Nabil Enterprises Limited.
The company plans to carry out right issue this year to raise Rp.2.4 trillion or about US$250 million, most of which will be used to finance the acquisition.
Acquisition will be carried out by purchasing convertible notes issued by Nabil Enterprises.
GBU owns 60 percent shares of PT Mega Karya Dwipa, which has iron ore concession in an area of less than 200 hectares in Sanggau regency, West Kalimantan. According to the company?s prospectus, the mine on ?moderate? basis, has resources estimate of 70 million tonnes of ore.
The company did not give further detail. (alex)