Quattro plans to buy Berau

Widjaja Group uses PT Quattro Inti Investama as tool to make offer up to 90 percent for holding company of PT Berau Coal.
Some informed executives said Quattro, mostly owned by high profiled business owner of Surabaya, Kentjana Widjaja, plans to compete against other six buyer nominators of Berau, the fifth largest coal producer nationwide.
The buyer nominators here include Huaneng Power International, the largest public power producer in China, PT Indika Energy Tbk, Siam Cement Group, Thailand, PT Medco Energi Internasional, PT Indo Tambangraya Megah Tbk, and Recapital Advisors.
When asked yesterday, Commissioner of Quattro Heru Tjahjo Pramono conceded the plan. Berau major shareholder, Rizal Risjad, the son of noted tycoon Ibrahim Risjad on President Soeharto era, many times offered Berau Coal shares. But none has been materialized. Rizal set US$1 billion price for all shares of Berau last year.
Some 51 percent shares of Berau are owned by PT Armadian Tritunggal, the company with almost full possession of Rizal through PT Risco, 30 percent by Rognar Holding B.V. and the rest by Sojitz Corp. Japan.
Berau average coal production is 20 million tons per year with 5,000-5,800 kcal coal in 100,000 hectare plots of concession areas in East Kalimantan. But Berau Coal could only produce some 13.1 million tons of coal last year. Berau booked US$63` million revenue and US$77 million net profit last year. The company earnings before interest, tax, depreciation, and amortization stood at US$153 million.
Widjaja Group has made cooperation with Daesang Corporation, a South Korean business group for bio industry, food and beverage.
Widjaja Group has retail business through Ranch Market supermarket. Besides, Quattro has owned one mining concession in Kalimantan.