Mar 11, 2011

Timah to acquire Sarana Karya

State-owned tin miner PT Timah Tbk (TINS) expects to acquire 100% shareholding of asphalt producer PT Sarana Karya in the first half of this year.
Timah will use internally generated cash to underpin the acquisition.
"We have planned to jack up our production volume. That is why we plan to buy Sarana Karya," said Timah Corporate Secretary Abrun Abubakar told Insider Stories.
Timah sets Rp1.24 trillion of capital expenditure. The company expects to post over Rp1 trillion net profit this year from Rp802.44 billion.
Previously, Timah CEO Wahid Usman said to difersify business, the company is seeking an opportunity to acquire mining companies focusing in coal and asphalt.
Syamsul Qamar, Sarana Karya CEO, said it plans to join Timah to develop asbuton plant in a bid to produce granular asphalt and ready mixed asphalt in Buton island. "We are now in talks. We hope to realize the plan," he said.

Disclosure: No position at the stock mentioned above.

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