Seroja Investments replaces old agreement with Adaro

By Romel S. Gurky

SGX-listed Seroja Investments Limited announced on Wednesday that its subsidiary PT Pulau Seroja Jaya (PSJ) and PT Adaro Indonesia have replaced the coal transportation contract signed in November 2010.

The old agreement, which would have expired in October 2017, is terminated by mutual consent and is replaced by a new agreement between PSJ and PT Maritim Barito Perkasa (MBP) which is an indirectly owned subsidiary of PT Adaro Energy Tbk. The new agreement which was signed on 20 April 2016.

The new agreement expires on Aug. 31, 2019 with an option to both parties to extend the agreement for another three years.

Under the new agreement, PSJ is expected to transport about 7 million metric tons of coal a year for the next four years from the Adaro coalmines which will generate an estimated cumulative revenue of US$48 million for the 4-year period from 2016 to 2019. This is part of the strategy of PSJ to establish a stable and reliable stream of business in its order books for next few years where conditions are more volatile.

The new agreement is expected to contribute positively to the revenue of the group for the current financial year ending Dec. 31, 2016.

Apart from the deemed interests of Edwin Soeryadjaya and Sandiaga Uno, who are key minority shareholders of Adaro Energy, the ultimate holding company of MBP, none of the company?s other directors or substantial shareholders has any interest, direct or indirect, in the above transactions save for their interests (if any) in the share capital of the company. Edwin and Sandiaga are substantial shareholders of the company. Edwin is also a director and the Non-Executive Chairman of the company.

The new agreement has been approved by the company?s audit committee in accordance with th general mandate passed by the shareholders at the last annual general meeting of the company on 28 April 2015.

Editing by Johannes Simbolon