* United Fiber: deal will help it focus on coal
* PT Dian Swastatika to own 93 pct of United Fiber
* Golden Energy is the holding firm for many coal companies
* United Fiber shares jump as much as 71 pct
By Harry Suhartono
SINGAPORE, Jan 27 (Reuters) – Indonesia’s Sinar Mas
Group is orchestrating a backdoor listing of its Indonesian coal
assets in Singapore through a $1.2 billion share-swap with a
small forestry firm listed on the Singapore Exchange, a move
that will give it access to more funds.
United Fiber System Ltd said on Friday it had
struck a S$1.5 billion agreement with Indonesian coal miner PT
Dian Swastatika Sentosa Tbk to help it focus on its
coal-mining business.
Under the agreement, United Fiber will swap 92.8 percent of
its enlarged share capital for a 67 percent stake in Golden
Energy Mines Tbk, the holding company of several
coal-mining firms in Indonesia. The 67 percent stake in Golden
Energy is currently owned by Dian Swastatika.
United Fiber shares, valued at $76 million, soared as much
as 71 percent and Golden Energy, which has a market value of
$1.7 billion and is part of conglomerate Sinar Mas, edged up 1.0
percent.
“Most companies list in Singapore because it gives
them access to the capital market, and if the market is keen
enough on the sector, it’s quite easy for them to add on
assets,” said Carey Wong, commodities analyst at OCBC Investment
Research in Singapore.
“There are a lot of unlisted private coal mines in Indonesia
that could be added on. Indonesia is sitting on a pretty rich
vein of coal.”
Golden Energy is controlled by Indonesia’s Widjaja family
via its listed unit Dian Swastatika and raised about $245
million in Indonesia’s biggest coal IPO last year.
GMR STAKE
Sinar Mas Group is one of Indonesia’s largest conglomerates
with interests in pulp and paper.
“The board is of the view that the proposed acquisition and
resultant refocusing of the company on coal mining is
appropriate given the growth opportunities that they offer,”
United Fiber said in a statement.
India’s GMR Infrastructure, which holds 30 percent
in Golden Energy, will be offered the opportunity to sell some
or all its shares to United Fiber, the statement said.
Golden Energy will become a subsidiary of United Fiber after
the completion of the deal, the Singapore company said. It said
it will try and remain listed on the Singapore exchange.
United Fiber has appointed DMG Partners Securities Pte Ltd
as the financial adviser.
($1 = 1.2563 Singapore dollars)
(Additional reporting by Eveline Danubrata; Writing by Anshuman
Daga; Editing by Muralikumar Anantharaman)