United Tractors to take over two coal miners

Publicly listed United Tractors Tbk (UT), the sole distributor of Komatsu construction machinery and heavy mining equipment, plans take over two coal mining companies as part of the company?s expansion program in the mining sector, Kontan reported on Wednesday.

The takeover will be carried through the company?s subsidiary PT Pamapersada Nusantara, one of the major mining contractors in Indonesia.

UT?s Corporate Secretary Sara K. Loebis said in Jakarta on Tuesday that the company was still finalizing the acqusition process. ?A due diligence audit is now underway, and we hope it could be completed by the end of this year,? he said, adding that the company was expected to be able to conclude the acquisition next year.

He, however, refused to unveil the names of the two coal mining companies. But sources said that acquisition targets were PT Asmin Bara Baronang, and PT Bahari Cakra Sebuku.

PT Asmin Bara is owned by Mandiri Sanni Pratama (60 percent) and Andalan Teguh Berjaya (40 percent). The company has been operating its coal business since 2001.

Meanwhile, PT Bahari Cakrawala which owns coal concessions in South and East Kalimantan, entered the coal mining sector in 1994. As of the end of 2008, the company is owned by Straits Asia Resources Limited (80 percent) and PT Rayka Wahana Digdjaja (20 percent). (*)