Thursday, September 20, 2007

Astra Take Over Bayan

PT Astra International Tbk has planned to conclude due diligence process on Bayan Group in two months. The automotive company is now processing external financing for the acquisition.

Astra has planned to acquire coal mining unit of Bayan Group controlled by Dato Low Tuck Kwong, a Singapore businessman who has become Indonesian citizen.

Bayan Group has Ask Astra to pay US$1.6 billion - US$1.8 billion for the unit including its coal terminal in Kalimantan. The acquisition is part of Astra's expansion to coal mining after acquiring 99% shares of PT Dasa Eka Jasatama on April 30 2007 through PT Pamapersada Nusantara, the unit of PT United Tractors Tbk.

PT Pamapersada is preparing US$300 million financing to support the expansion.

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