Maritime Minister's Toba Sejahtra Completes Sale of Coal Unit to Singaporean Company
Jakarta. Indonesian conglomerate Toba Sejahtra, founded in 2004 by Luhut Pandjaitan — now Indonesia's coordinating maritime minister, has relieved control of its coal unit Toba Bara Sejahtra to Singapore-based Highland Strategic Holdings, the company announced in a filing to the Indonesia Stock Exchange on Thursday (26/01).
The holding firm completed the sale of a 61.79 percent stake in the coal unit, or equivalent to 1.24 billion shares, to Highland on Wednesday, Toba Bara said in the statement.
"The parties involved in the transaction are not affiliated," the company wrote.
Toba Bara did not disclose the total value of the divestment. But based on Toba Bara's closing share price on Nov. 9 — when Toba Sejahtra and Highland Strategic signed their conditional sale and purchase agreement — the transaction would have been valued at Rp 1.07 trillion ($80 million), according to the Jakarta Globe's calculation.
After the transaction Toba Sejahtra now only has a 10 percent stake in the coal miner.
According to the company's presentation on Sept. 30 last year, 12.5 percent of Toba Bara Sejahtra was owned by the public, 6.2 percent by Bara Makmur Abadi and 5.1 percent by Sinergi Sukses Utama. Local businessman Roby Budi Prakoso owned the rest.
Toba Bara said in the statement that the purchase will not change its operational activity, financial condition, legal affairs or business outlook.
The company's revenue fell 28.5 percent to $192.1 million in the first nine months of last year, from $268.6 million in the same period in 2015.
Its coal production was also down 6.7 percent to 4.2 million tonnes in the period from 4.5 million tons in 2015.
Toba Bara Sejahtra traded under the share ticker TOBA at the Indonesia Stock Exchange. Its shares closed 2.36 percent higher on Thursday at Rp 1,300 a piece, the highest since Dec. 12, 2012.
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