Indonesia Transport & Infrastructure becomes a holding for MNC Group's coal companies
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Indonesia Transport & Infrastructure Jadi Induk Usaha Batu Bara Grup MNC
18 October 2021
Jakarta – PT Indonesia Transport & Infrastructure Tbk (IATA) is signing a memorandum of understanding (MoU) to acquire PT MNC Energi from PT MNC Investama Tbk (BHIT) as the majority shareholder. After the transaction, Indonesia Transport & Infrastructure will be the parent entity of all coal companies in MNC Group.
MNC Group Head of Investor Relations, Natassha Yunita, said that Indonesia Transport & Infrastructure was preparing to take over three companies. The first company is PT Bhakti Coal Resources, a coal mine exploration and producer in South Sumatra.
Bhakti Coal is a parent company of several companies that own a mining business permit, namely PT Putra Muba Coal, PT Bhumi Sriwijaya Perdana Coal, PT Indonesia Batu Prima Energi, PT arthco Prima Energi, PT Sumatra Resources, PT Energi Inti bara Pratama, PT sriwijaya energi Persada, PT Titan Prawira Sriwijaya, PT Primaraya Energi, and PT Putra Mandiri Coal. Moreover, their resources are estimated to reach 1.75 billion metric tonnes (MT) and their reserves are estimated to reach 750 million MT.
The second company is PT Nuansacupta Coal Investment, a coal mine exploration and producer in east Kalimantan. Then, the third company is PT Suma Sarana, an oil exploration company in Papua Province.
“This acquisition will be implemented after the testing and the valuation on MNC Energi. Assuming that the due diligence process progresses smoothly, IATA will ask for approval from OJK (Financial Services Authority) with a completion target by the end of the first quarter of 2022,” she said in a written statement.
This transaction plan is a strategic step for Indonesia Transport & Infrastructure to take advantage of the continuous coal price increase. The company believes that this acquisition will not only boost the business prospect but will also significantly strengthen the company’s values as the company has changed its business priority from the transportation and the infrastructure sector to the energy sector.
Indonesia Transport & Infrastructure is a company in the commercial flight and the air transportation service sector. The company is a subsidiary of PT Global Transport Services.
