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Tuesday, 05 May 09
INDONESIA'S ADARO PAYS $78.6 MLN FOR COAL-BARGING FIRM - REUTERS


INDONESIA's largest coal producer by market value, PT Adaro Energy Tbk, said late on Monday it paid $78.6 million for a 74 percent stake in Orchard Maritime Pte Ltd, a coal-barging and ship-loading firm.

Boy Garibaldi Thohir, Adaro's president director, said in a statement that the acquisition of Singapore-based OML would improve the firm's coal supply chain.

"We will have better control of the supply chain and less counter-party risk," Thohir said.

Adaro, which has a market capitalisation of $3.4 billion, sells to 48 customers in 18 countries worldwide, including power utilities Thai Power and Indonesian state electricity firm Perusahaan Listrik Negara (PLN). Exports account for 70-72 percent of its sales.

The firm expects to produce 42-45 million tonnes of coal this year, up from 38.5 million tonnes in 2008, and aims to increase production to 80 million tonnes per year in the next five years.

San Miguel Corp of the Philippines is in talks to buy a stake worth about $500 million in Adaro, which Goldman Sachs , Citigroup and hedge fund Farallon plan to sell.

Source: http://www.reuters.com/article/rbssEnergyNews/idUSJAK50369320090505



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