WIKA to enter coal business

IDX-listed construction firm PT Wijaya Karya Tbk. (WIKA) plans to acquire the majority stake in a coal mining contractor company in Kalimantan, Investor Daily reported Tuesday.

WIKA's corporate secretary Eddy Sularso said in Jakarta last week that the memorandum of understanding for the takeover plan was signed in Jakarta last week. But he declined to name the company, only saying that it had total assets of about Rp 1 trillion.

The acquisition is expected to be completed in the second semester of this year, he said.

He said that WIKA would take over at least 50 percent of the coal mining company's shares. "If the acquisition fails, WIKA will set up a joint venture with the company," he said.

According to him, WIKA will hold an extraordinary shareholders meeting in March to seek shareholders approval on the takeover plan. (*)