Feb 7, 2011

Bayan, Kangaroo extend due diligence

Coal miner controlled by businessman Dato' Low Tuck Kwong PT Bayan Resources Tbk (BYAN) and Ausralia-listed coal company Kangaroo Resources Limited have agreed to extend a due diligence period to enable the accomplishment of small number of outstanding items.
In an official statement obtained today, both companies initially set a 30 days of the due diligence on January 28 2011.
The extension won't delay the transaction's accomplishment. Both Bayan and Kangaroo are continuing to finalize independent experts' reviews on the assets, ahead of shareholder meetings to approve the transaction.
On December 28 2010, Bayan and Kangaroo Resources entered into a share purchase agreement. 
Bayan will inject Kangaroo Resources with 9 coal concession assets in East Kalimantan with coal resources of 3.8 billion metric tons.
In return, Kangaroo Resources will issue new shares, enabling Bayan Resources to control Kangaroo Resources.
Bayan also entered into share sale and purchase agreements with three buyers PT Ilthabi Bara Utama, Prime Mine Resources Limited, Romo Nitiyudi Wachjo, on December 28 2010 to acquire 9 coal consession assets in East Kalimantan.

Disclosure: No position at the stock mentioned above.  

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