UT subsidiary acquires C. Kalimantan coal firm

IDX-listed heavy equipment and mining firm PT United Tractors Tbk (UT) announced Thursday that its subsidiary PT Tuah Turangga Agung (TTA) had 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 in a statement 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.

The closing of the transaction will be effective once the condition precedents in the CSPAs have been fulfilled, no later than six months after the signing of 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.

Editing by Reiner Simanjuntak