Korea Electric Power Corp (KEPCO) said today it will 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 PT Bayan Resources Tbk (BYAN) 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.
The investment will help the state-run utility secure 2 million tonnes of coal a year from 2012 and 7 million tonnes annually from 2015, pushing up its coal self-development rate to 34 percent from 24 percent currently, it said.
In a statement to Indonesia Stock Exchange (IDX) today, Bayan's founders Dato' Low Tuck Kwong, Jenny Quantero, and Engki Wibowo have entered into shares sales and purchase agreement with KEPCO.
Disclosure: No position at the stock mentioned above.
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