PT Indika Energy Tbk. and its wholly-owned subsidiary PT Indika Inti Corpindo (collectively, “Indika Energy”) has entered into separate Share Purchase Agreements in 2nd half of September 2017 with each of Samtan Co., Ltd. and PT Muji Inti Utama, respectively, to purchase 40.0% of PT Kideco Jaya Agung (“Kideco”) from Samtan and 5% of Kideco from Muji for an aggregate total consideration of US$677.5 million.
Kideco is third largest coal mine Indonesia and export its coal to around 12 countries worldwide KIDECO is producing more than 40 million tons of Medium calorific coal with very low sulfur content of 0.1% as well as a low ash content of 2.5%.
According to the company’s press release issued 2nd part of September, subject to fulfillment of terms and conditions, upon closing, Indika Energy will become the majority shareholder with 91% equity ownership and Samtan will retain a 9% stake. Indika Energy has built an integrated business portfolio in energy resources, services, and infrastructure. “With its substantial coal reserves, resources, and operational excellence, Kideco will continue to serve as Indika Energy's sustainable growth foundation. This transaction will further strengthen Indika Energy’s position in the energy business value chain,“ said Arsjad Rasjid, President Director and Group CEO of Indika Energy.
With the assumption of control of Kideco, Indika Energy will further enhance synergies within its group subsidiaries such as its contract mining company, PT Petrosea Tbk. and coal transportation and logistics company, PT Mitrabahtera Segara Sejati Tbk.
The transaction is expected to complete in the fourth quarter of 2017, subject to satisfactory fulfillment of the terms and conditions, as well as regulatory approvals set out in the Share Purchase Agreements.
16 October 2017