Jul 23, 2010

Bayan to supply 2 m tons coal to KEPCO

PT Bayan Resources Tbk (BYAN) has agreed to supply 2 million tons of coal to Korea Eletric Power Corporation (KEPCO) in 2012.
The coal supply agreement is part of 20% stakes acquisition agreement between Bayan and KEPCO worth US$512.3 million or Rp6,955 per share.
"We welcome KEPCO's participation in Bayan Group. We belive the partnership will strengthen Bayan's position in the coal market," Bayan's President Director Eddie Chin in a press release today submitted to Indonesia Stock Exchange.
According to him, Bayan will initiate to supply 2 million tons of coal in 2012 and 7 million tons in 2015.
"The coal supply to KEPCO is mainly coming from Tabang concession of Bayan Group, which is in line with the company's plan to jack up production," he said.
KEPCO agreed to acquire 618 billion won (US$512.3 million or Rp6,955 per share) to buy a 20% stakes or 666.67 million shares in Indonesia's Bayan Resources to secure more coal supplies.
The sale price is 4.07% lower than Bayan's closing market price today at Rp7,250 per share. Korea Electric said in a statement that it was purchasing the stake in Indonesian coal miner Bayan Resources and a company spokeswoman provided the value of the deal.
Disclosure: No position at the stock mentioned above.

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