United Fiber proposed $1.5 billion acquisition on GEMS? shares
Friday, January 27 2012 - 04:05 AM WIB
Singapore-listed provider of forestry services, United Fiber System Limited said that the company had reached heads of agreement (HoA) with Indonesian listed coal group PT Dian Swastatika Sentosa Tbk on the proposed US$1.5 billion acquisition of PT Golden Energy Mines' shares.
The coal company, Golden Energy Mines Tbk (GEMS) is subsidiary of PT Dian Swastatika Sentosa.
Under the deal signed on January 26, the United Fiber System proposed the acquisition of 66.9 percent of GEMS from DSS, by way of exchange for new shares representing 92.7 percent of share capital of United Fiber.
?The proposed acquisition, if it proceeds to completion, will result in a change in control of the company (United Fiber) and would constitute a ?very substantial acquisition? or a ?reverse take-over transaction,? the United Fiber said in its announcement to the shareholders.
It said that the company and DSS will negotiate in good faith and sign the definitive documentation on terms not inconsistent with the HoA on or before 7 March 2012.
Editing by Adianto P. Simamora