UT to complete acquisition of C. Kalimantan coal firm in first semester

By Thomas Sembiring

Petromindo|Thomas

IDX-listed heavy equipment and mining firm PT United Tractors Tbk (UT) hopes to be able to complete the acquisition of Central Kalimantan coal mining firm PT Suprabari Mapanindo Mineral (SMM) in the first semester of this year.

UT President Director Gideon Hasan said on Friday that if the acquisition process can be completed as planned, the company hopes to start commercial production of the SMM coal mine at the end of this year.

?We expect that by the end of this year, commercial production can start,? Gideon said at the 60th anniversary celebration of IDX-listed auto giant PT Astra International Tbk, UT?s parent.

UT through subsidiary PT Tuah Turangga Agung (TTA) signed on October 11 of last year conditional sale and purchase agreements (CSPAs) to acquire up to 80.1 percent shares in SMM from Vasse Holdings Pte, PT Cipta Olah Alam Lestari, and individuals Salman Ernawan and Eddy Winata.

UT said at the time the value of the transaction was 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.

Editing by Reiner Simanjuntak