Release: Bumi acquires 44% shares of Darma Henwa
Wednesday, January 7 2009 - 06:32 AM WIB
This process concluded earlier through a "coal SPV" which acquired 80 percent stakes in Zurich Assets International Ltd. which, in turn owns 44% of DEWA.
The acquisition of DEWA, a major domestic mining operator by BUMI, Indonesia's largest and most profitable listed mining company with coal reserves in excess of 2.1 billion tons, builds essential mutually beneficial synergy. This will lead to greater operational efficiencies, optimize equipment and resource between BUMI's captive mining operations with that of DEWA.
"We are pleased to announce our ownership in DEWA, who is now one of BUMI's important mining operators with a growing presence in KPC and Arutmin projects. By its involvement in DEWA, we will benefit greatly from their mining operating experience which, in turn, we can advantageously employ not just in KPC and Arutmin but present opportunities for BUMI in all our other mining and mining related expansion and diversification plans", said Mr. Ari Hudaya, BUMI President Director.
DEWA listed on IDX in Sep '07 and is a high value leading mining contractor established in 1991. It was originally part of Henry Walker Eltin (HWE), an Australian infrastructure giant. HWE, in turn, sold DEWA in 2005 to a domestic consortium of investors. DEWA provides contract expertise in heavy equipment, bulk earthworks, general mining, construction, civil engineering and maintenance services.
DEWA has strategic contractual relationships with BUMI. It was awarded two life-of-mines. Mining contracts at Bengalon mine, East Kalimantan and Asam Asam mine, South Kalimantan in the KPC and Arutmin concession areas respectively.
In 2009, DEWA expects to mine 7-9 m tons in Bengalon and 2 m tons in Asam Asam which is committed to increase exponentially to 12 m tons in Bengalon and five fold to 10 m tons in Asam Asam in 3 years.
The acquisition is presently valued at US$218 million (at a Fix Exchange Rate of US$1 equal Rp11,050). Of this value, BUMI will pay 20 percent in the first year (10 percent upfront and another 10 percent during the 1st year) with the remaining 80 percent payable at the end of the third year depending on the production operating parameters in Bengalon and in Asam Asam being met.
DEWA is an earning, successful company with FY 2008 estimated revenues of $200 million and estimated EBITDA of $90 million (an impressive 45 percent of revenue). This is poised to grow significantly in the years ahead as it raises its production profile - which now is further catalyzed by its alliance with BUMI.
"The acquisition is one more major step in realizing BUMI's coal expansion and mining related diversification plans outlined for the medium term. Our goal is to achieve operational excellence in all our mining activities. We will now build upon our successes and profitability. BUMI has already demonstrated that it is a leader in all aspects of coal mining and aims to further strengthen its position in future", added Ari Hudaya.(end of release)