UT units completes restructuring program

By Romel S. Gurky

IDX-listed heavy equipment company PT United Tractors Tbk (UT) said that its wholly owned subsidiaries coal mining and trading firm PT Tuah Turangga Agung (TTA) and mining contractor PT Pama Persada Nusantara have completed a key restructuring program.

In a filing with the Indonesia Stock Exchange, UT said that under the restructuring program completed on August 29, Pama transferred all of its ownership in four East Kalimantan coal mining firms including Asmin Bara Bronang (ABB), Asmin Bara Jaan (ABJ), Prima Multi Mineral (PMM), and Kadya Caraka Mulia to sister company TTA in a transaction worth Rp 2.77 trillion.

In return, Pama obtains a 60 percent stake in TTA, reducing the ownership of UT in the latter firm to 40 percent, worth the same value.

Meanwhile, UT Corporate Secretary Sara K. Loebis was quoted as saying that the restructuring measure is expected to allow Pama to focus on its core mining contractor business, giving the coal mining business to be handled by TTA.

Editing by Reiner Simanjuntak