RUIS? shareholders okays plan to pledge asset

IDX-listed services company PT Radiant Utama Interinsco Tbk (RUIS) announced that shareholders have approved last week plan to pledge its assets to the financiers which will fund the acquisition of Mobile Offshore Production Unit (MOPU).

The company is planning to buy MOPU from its partner, Global Process Systems (GPS) from Dubai.

Previously, starting 2005, the company and GPS are having a partnership to provide the MOPU for the client, a PSC company in East Java. The project will end in 2020.

However, due to some reason, GPS offered company to buy the MOPU and company agreed to buy the assets with the value of US$35 million, it said, adding that it will fund the acquisition by the external funding.

The company has secured loan commitment from a foreign bank and a financial institution. The company expects the net profit in 2011 and 2012 will be higher by Rp 5 billion (US$=Rp.8,500) and Rp 12 million respectively.

The company said that based on the independent appraisal, the MOPU has value of US$ 70 million.(alex)