Dec 21, 2011

Benakat buys Astrindo Mahakarya

PT Benakat Petroleum Energy Tbk (BIPI) today announced a US$600 million take over of PT Astrindo Mahakarya
Indonesia (AMI), company providing coal mining infrastructure services.
BIPI has appointed PT Danatama Makmur as its financial advisor for this transaction. "The acquisition is in line with Benakat's business development strategy and is a first step in enhancing its business model, transforming the Company into one of Indonesia's leading integrated energy and natural resources player. All relevant parties have
reached an agreement and the Conditional Sales and Purchase Agreementhas been signed on 19 December 2011," said Michael Wong, BIPI's Finance Director, in a press statement. 
According to Michael, this acquisition is highly strategic and will have a significant impact on BIPI's future business growth, as it is consistent with BIPI's vision of reshaping itself from an integrated oil & gas company into an integrated natural resources management company in Indonesia.
Furthermore, with its attractive valuation, this acquisition is expected to rapidly add value to all stakeholders by way of inorganic growth strategy.
With yearly coal handling capacity of over 70 million tons, Michael added, this acquisition is expected to further boost the company's performance substantially by generating additional net profit approximately over US$80 million in 2012, and US$180 million in 2013. But, the press statement hasn't clearly revealed how Benakat to find the financing.

Disclosure: No position at the stock mentioned above.

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