Press Release

PT BUKIT Asam Tbk (PTBA) will do a lot of expansion in recent years, including inorganic expansion. Besides aiming at the acquisition of several new mines, PTBA also plans to enter into non-mining business.

Achmad Sudarto, PTBA Finance Director, said the company plans to mergers and acquisitions (M&A) other than the coal mining sector, such as shipping transportation, and oil palm plantations industrial (CPO).

'We have a mandate to aggressively because it has quite a lot of cash. So we do not just rely on organic growth, but also aiming for a leap from inorganic growth,' he said in Jakarta, Wednesday (22/3).

He explained, are now conducting due diligence with several acquisition targets. 'There are about three to five companies that are being explored,' he said.

Achmad said that, if only rely on the coal business, growth can be achieved only approximately 30% per year. Meanwhile, the company can earn a higher growth if acquiring large enterprise assets.

'In this acquisition, we have to have the major portion and the company must be profitable,' he added.

PTBA aiming plantation sector because it has a large enough amount of land to be reclaimed. 'So, the land can be planted CPO, so that it can produce value-added products,' he said.

PTBA also prepare the coal mines, both local mine or mines abroad. There are about three to five mining companies are being explored.

The company aims to mine the coal reserves of at least 100 million tons. 'We opened up opportunities overseas acquisitions,' said Achmad.

The entire acquisition was expected to be completed by the end of 2017. He estimated that the total assets of PTBA which is currently valued at Rp 18.5 trillion, could rise significantly after the acquisition.

PTBA also is participating in a number of power plant project tender outside Java and Sumatra. Total capacity is being tendered about 800 mega watt (MW). The investment value of the project was approximately US$ 800 million, or more than Rp 10 trillion.

To perform the proposed acquisition, PTBA still have funds available cash around Rp 3.7 trillion. PTBA also still have savings shares (treasury stock) amounting to Rp 2.3 trillion. Next year, the company still has space to issue global bonds worth US$ 2.5 billion. Narita Indrastiti

(Source : www.kontan.co.id)