Aug 13, 2011

GMR Energy buys Golden Mines

PT Dian Swastika Sentosa Tbk (DSSA), a parent company of coal mining PT Golden Energy Mines that is controlled by Fuganto Widjaja, son of Sinarmas' Indra Widjaja, has signed a conditional Sales & purchase agreement (CSPA) with India's GMR Energy Ltd, subsidiaries of GMR Infrastructure.
GMR Energy has agreed to acquire a 30% stake in Golden Mines Tbk for consideration price of US$450-US$550 million. 
The transaction is expected to be completed by the end of this year. "The CSPA was signed yesterday. GMR will buy combination beetwen our stakes and from IPO," said Hermawan Tarjono, DSSA's Corporate Secretary. 
Golden Mines plans to go IPO in November and release 15-20% shares to get proceed Rp3 trillion-Rp4 trillion helped by PT Sinarmas Sekuritas. As part of the deal, GMR Energy Ltd has entered into an off-take agreement with Golden Energy to buy coal over the next 25 years starting Jan 1, 2012. The annual off take will steadily increase to 10 million tonnes per annum over the coming years, GMR said in statement. 
GMR, with interests in airports, energy and highways, will fund the buy via a combination of debt and internal accruals.

Disclosure: No position at the stock mentioned above.  

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