May 2, 2011

UNTR to close takeovers in 2 months

Heavy mining equipment distributor PT United Tractors Tbk (UNTR) will accomplish takeover deals on two coal mining companies in Central Kalimantan within 1-2 months.
"We have ended the due diligence over two coal companies. We are now in talks in a bid to meet agreement of sale conditions with sellers," said United Tractors Finance Director Gideon Hasan today.
The target companies, with coal calorie over 5,800 kcal, are still green field.
The company will use 45% of the proceed of Rp6.07 trillion rights issue to increase shareholdings or channel to subsidiary for acquision of coal concession.
Gideon said United Tractor's subsidiary PT Pamapersada Nusantara, Indonesia's largest coal mining contractor, is targeting a 6.55% increase in coal production to 83 million tons in 2011 from 77.9 million tons.
UNTR, via its coal unit, is targeting to produce 4.5 million tons coal in 2011 and 6 million tons in 2012.
Gideon said UNTR is participating a tender of US$1 billion mouth mine power plant project with capacity of 2x300 MW owned by PT Bukit Asam Tbk in Riau.
The company, ties up with PT Wijaya Karya Tbk (WIKA), is also participating a tender of 2x300 MW power plant in South Sumatra.
"If we win the project, we will have a minority stake. We will use the proceed from rights issue to finance the project," he said.  
United Tractors will distribute Rp1.6 trillion or Rp430 per share dividend on June 13, representing 40% of its net profit last year of Rp3.87 trillion.
The dividen is consisting of a Rp160 per share dividend interim which was distributed on November 12 2010.

Disclosure: No position at the stock mentioned above.  

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