UPDATE: Indika: May Buy Stakes In BHP Indonesia,Berau Coal Projects
October 28 2009 - 3:33AM
Dow Jones News
Indonesian coal producer PT Indika Energy (INDY.JK) may buy
stakes in BHP Billiton Ltd.'s (BHP) Indonesian coal operations and
in local coal company PT Berau Coal, and has interest in "several"
other potential acquisitions in the coal sector, a company
executive said Wednesday.
Indika Vice President-Director Wisnu Wardhana told Dow Jones
Newswires that the company has submitted an expression of interest
in BHP Billiton's Maruwai metallurgical coal project and aims to
submit a bid for a stake. BHP Billiton plans to sell a 25% stake in
Maruwai, which consists of seven coal mine sites in Central and
East Kalimantan provinces, as early as the first quarter of next
year.
He said Indika is still in the running to buy a stake in Berau
Coal and aims to buy as much as 100% of the company. People with
knowledge of the matter have previously said that financial
services company PT Recapital Advisors has been selected as the
preferred bidder for Berau Coal ahead of Indika and other bidders.
A decision on the sale is expected this week.
Indonesian holding company PT Armadian Tritunggal and
Netherlands-based firm Rognar Holding B.V. plan to sell part of all
of their stakes in Berau Coal. The two hold a combined 90% of the
company and Japan's Sojitz Holding Corp. holds the remaining 10%.
If possible, Indika aims to buy the entire company including the
stake held by Sojitz, Wardhana said.
Indika plans to use some of the proceeds from its planned global
bond deal to fund the potential acquisitions, Wardhana said. He
said 22% of the funds raised from the bond sale will be set aside
for acquisition and investment purposes, but didn't elaborate
further.
Indika is in the process of bookbuilding and is expected to
price about $230 million of global bonds this week, a person
familiar with the matter said earlier Wednesday. Indika is looking
to pay yields of around 9.75% on the senior secured debt, which has
a seven-year tenor with a call option after four years, and will be
issued through its unit, Indo Integrated Energy II B.V., the person
said.
-By Linda Silaen, Dow Jones Newswires; 62 21 3983 1277;
Reuben.Carder@dowjones.com