Thai power firm acquires stake in Adaro Indonesia
Wednesday, November 23 2016 - 01:25 AM WIB
Coal miner PT Adaro Indonesia (AI), a wholly owned subsidiary of IDX-listed coal mining company PT Adaro Energy Tbk, has amended its Article of Association in relation with the issuance of new shares amounting to 57.857 shares or 11.53 percent of the issued and paid-up (rights issue).
Adaro said in a statement on Monday that the entire shares from the rights issue will be purchased by EGAT International Company Limited (EGATi), a company governed by the Laws of the Kingdom of Thailand.
The company said the transaction has become effective by the approval of Ministry of Energy and Mineral Resources Republic of Indonesia, by the obtainment of notice from the Minister of Law and Human Rights, and also by the fulfillment of all the requirements and conditions agreed upon with EGATi.
Adaro said net proceeds from the rights issue, amounted to US$325 million (which has been agreed will be paid gradually by EGATi), will be used to strengthen AI's financial position.
In addition, AI's position will also be strengthen through this rights issue with the plan to sign a long-term coal supply agreement (approximately 20 years), in which AI will supply EGATi and its affiliates with AI's clean coal for their power plants. EGATi is a subsidiary of the Electricity Generating Authority of Thailand, a Thai state-owned enterprises engaged in power generation.
Editing by Reiner Simanjuntak