UFS, DSS enter share purchase deal
Tuesday, July 3 2012 - 01:59 AM WIB
Singapore-based United Fiber System Limited (UFS) announced that the company had entered into a share purchase agreement with PT Dian Swastatika Sentosa Tbk and GMR Coal Resources Pte. Ltd.
Under the agreement, the UFS would acquire about 67 percent of issued share capital of PT Golden Energy Mines Tbk (GEMS) from DSS and 30 percent of the issued share capital of GEMS from GMR.
The purchase consideration for the DSS sale shares and the GMR sale shares are S$1.5 billion and S$693 million respectively.
The UFS and DSS reached heads of agreement (HOA) on the acquisition plan early this year.
DSS, a subsidiary of PT Sinar Mas Tunggal, engages in power and steam generation, coal mining, and trading businesses through 32 direct and indirect subsidiaries. DSS started its commercial operations in power and steam generation by operating four power plants located in Tangerang, Serang and Karawang with a total production capacity of approximately 300 megawatts of power and approximately 1,336 tons per hour of steam. DSS is currently undertaking to build a 2 x 150 megawatts coal fired power plant in South Sumatera as commissioned by state owned electricity company.
GMR is a subsidiary of GMR Energy Limited, the flagship company of the energy investments of the GMR Group, one of the largest players in the airport infrastructure sector in India.The GMR Group currently has an aggregate power generation capacity of approximately 6,000 megawatts under operation and construction, and has significant future growth plans. Projects under construction include an 800 megawatts power plant in Singapore which is scheduled to commence operations in 2013.The GMR Group has made investments in coal mine assets in South Africa, Indonesia and India, which include its strategic investment in GEMS.
GEMS is a limited liability company incorporated in Indonesia and has been in coal mining and coal trading. GEMS Group is the owner and operator of three (3) coal producing projects in Indonesia, under PT Borneo Indobara, PT Kuansing Inti Makmur and its subsidiaries, and PT Trisula Kencana Sakti.
Editing by Adianto P. Simamora