UT hopes to complete acquisition of SMM in Q1 next year

By Thomas Sembiring

IDX-listed heavy equipment and mining firm PT United Tractors Tbk (UT) hopes to be able to complete the acquisition of 80.1 percent shares in a Central Kalimantan coal mining firm in the first quarter of next year.

?Early next year, in the first quarter will be completed,? said UT Finance Director Iwan Hadiantoro said recently, but declined to provide further details.

As has been previously reported by this portal, UT subsidiary PT Tuah Turangga Agung (TTA) on October 11 signed conditional sale and purchase agreements (CSPAs) to acquire up to 80.1 percent shares in mining firm PT Suprabari Mapanindo Mineral (SMM) from Vasse Holdings Pte, PT Cipta Olah Alam Lestari, and individuals Salman Ernawan and Eddy Winata.

UT said last month the value of the transaction is set at maximum US$45.73 million, which will be adjusted by the closing date of the transaction as it depends on the fulfillment of the terms and conditions as set in the CSPAs.

SMM has coal mines located in Central Kalimantan, with operation started in December of 2014, producing both semi-hard coking coal and high quality steam coal.

Meanwhile, UT Corporate Secretary Sara Loebis said that once the acquisition process has been completed, the company would proceed with developing required infrastructure facilities such as hauling road and jetty.

Editing Reiner Simanjuntak