Pattinson sells RI coal stakes

Pattinson sells RI coal stakes

SYDNEY (Reuter): Washington H. Soul Pattinson and Co Ltd said yesterday it had agreed to sell minority interests held in two of its Indonesian coal subsidiaries to Asian Mining and Energy Corporation (ASMEC) for US$15 million.

"The agreement incorporates the sale of New Hope subsidiaries New Hope Indonesia Pty Ltd and Aspac Investments Pty. Ltd., together with Beckkett Pte Ltd, a subsidiary of Washington H. Soul Pattinson," the company said in a statement.

Now Hope owns 40 percent of the P.T. Multi Harapan Utama coal mine in East Kalimantan.

Aspac Investments and Beckett are investment companies holding 40 percent and 34.2 percent respectively of P.T. Grafen Invesindo Finance, a venture capital company with indirect minority holdings in the P.T Adaro Indonesia coal mine and P.T. Indonesia Bulk Terminal port development in South Kalimantan.

The company said the sale represented an ideal opportunity to consolidate the group's major Indonesian holdings of 50 percent in coal producer P.T. Adaro Indonesia and 50 percent of P.T. Indonesia Bulk Terminal.

"It has the added advantage of bringing together the substantial and well-connected business interests of ASMEC through the Swabara Group of Indonesia into direct partnership with WHSP/New Hope, hence providing both security and market opportunity to the Group's Indonesian investments," Washington H. Soul Pattinson's chairman, Jim Millner said in a statement.

The company said ASMEC would combine with Swabara Group, a mining and energy organization, partly owned by Indonesian businessmen Hashim Djojohadikusumo and Graeme Robertson.

ASMEC is owned by Indonesian interests which include the Tirtamas and Raja Garuda Mas groups.