UT unit transfers Rp 165 billion assets

By Romel S. Gurky

IDX-listed heavy equipment company PT United Tractors Tbk said Tuesday that its coal mining contractor subsidiary PT Multi Prima Universal (MPU) and coal mining service unit PT Kalimantan Prima Persada (KPP) have on September 19 entered into an agreement, under which MPU gradually transfer its assets to KPP.

UT said in a statement that the transfer of assets, which are mostly heavy equipment and parts with estimated market value of about Rp 165 billion, was expected to be completed mid next year.

It explained that the move was part of efforts to expand the firm?s mining services business and to centralize the group?s medium-scale mining services with KPP.

KPP was set up in 2003 engaging in mining contractor services, road management, port management services and coal trading. Meanwhile, MPU, set up in 2008, provides mining services including mining construction, road works, removal / stripping, excavation of minerals, and transport of mine materials.

Editing by Reiner Simanjuntak