Sinar Mas affiliated unit to acquire Coal Assets in South Sumatra
Golden Energy Resources (GER) Limited announced that though their 66.98% subsidiary GEMS, they had entered a Sale & Purchase Agreement with GMR Energy (Netherlands) B.V. to acquire:
- 5% of total issued shares in PT Barasentosa Lestari
- 100% of total issued shares in PT Unsoco
- 1% of total issued shares in PT Duta Sarana Intermusa
- 100% of total issued shares in PT Dwikarya Sejati Utama
in an aggregate amount of USD 59.72 Million.
In addition, GER will acquire mandatory convertible bond from GMR Energy amounting to USD 6.4 Million. The rationale is for GER to expand its business operations, coal reserves and production levels and through this acquisition, to enable GER to have access to coal concession and coal deposits owned by PT Barasentosa Lestari.
PT Barasentosa Lestari acquired the coal mining license with validity of 30 years starting from 2011 with area of work in Musi Rawas, Musi Rawas Utara and Musi Banyuasin Regencies, South Sumatra. The work area consists of North Block and South Block. As of April 2017, the estimated coal resources and reserves in the South Block alone is 393 Million Tonnes and 194.6 Million Tonnes respectively.
GEMS is 30% owned by GMR Singapore with GMR as the Ultimate Beneficial Owner, which is a company listed in Bombay Stock Exchange. The Net Asset Value of the target group was USD 1.86 Million while the total liabilities stood at USD 79.36 Million implying a Total Asset value of USD 81.219 Million. The fund being used to finance the transaction is based on GEMS internal resources. The coal concession valuation is independently commissioned to Salva Mining Pty Ltd based on JORC Code 2012 and VALMIN Code 2015 and the preferred valuation of the coal concession area (North and South Block) is USD 258.5 Million.
The target group had been in the red in FY2014 and FY 2015 amounting to USD 616K and USD 404K respectively while it managed to make profit in FY 2016 and FY 2017 for USD 106K and USD 13K respectively.
Golden Energy and Resources were formerly known as United Fiber System following SGD 1.88 Billion Reverse take Over by a unit controlled by Indonesia’s Sinar Mas group, under the subsidiary of PT Dian Swastatika Sentosa Tbk.https://straitsjournal.com/435/Industrial Goods & SvcsMetals & MiningsCoal,GMR,Golden Energy Resources,Indonesia,mas,mining,sinar,Sinar Mas GroupGolden Energy Resources (GER) Limited announced that though their 66.98% subsidiary GEMS, they had entered a Sale & Purchase Agreement with GMR Energy (Netherlands) B.V. to acquire: 5% of total issued shares in PT Barasentosa Lestari 100% of total issued shares in PT Unsoco 1% of total issued shares...escveritas [email protected]AdministratorThe Straits Journal