Aug 24, 2010

United Tractors sets a coal acquisition

Publicly listed heavy equipment Komatsu distributor PT United Tractors Tbk (UNTR) is eyeing another coal mining acquisition located near coal mine PT Tuah Turangga Agung, wholly owned subsidiary.
"Acquisition is estimated to complete this year," said United Tractors Investor Relations Ary Setyawan as reported by Kontan daily today.
The acquisition target has coal with 6,000 cal and enabled to produce 500,000-1 million tons annually. But, he couldn't estimate the acquisition value. United Tractors will use internally generated cash flow to bankroll the acquisition.
The company's cash recorded Rp3.1 trillion in the first half of this year and booked Rp9.5 trillion retained earning.
So far, United Tractors has acquired three coal mining companies namely PT Asmin Bara Bronang, PT Asmin Bara Jaan worth US$40 million and US$75 million respectively. The company in July completed acquisition of PT Agung Bara Prima worth US$15.9 million.
It estimated coal production might reach 3.2 million tons by the end of this year, consisting 2.5 million tons from wholly owned subsidiary PT Pamapersada Nusantara, Indonesia's largest coal mining contractor, and 700,000 tons from Tuah Turangga Agung.

Disclosure: No position at the stock mentioned above. 

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