India Star Energy (LSE:INDY)
Historical Stock Chart

From May 2019 to May 2024

Indonesian coal producer PT Indika Energy (INDY.JK) may buy stakes in BHP Billiton Ltd.'s (BHP) Indonesian coal operations and in local coal company PT Berau Coal, and has interest in "several" other potential acquisitions in the coal sector, a company executive said Wednesday.

Indika Vice President-Director Wisnu Wardhana told Dow Jones Newswires that the company has submitted an expression of interest in BHP Billiton's Maruwai metallurgical coal project and aims to submit a bid for a stake. BHP Billiton plans to sell a 25% stake in Maruwai, which consists of seven coal mine sites in Central and East Kalimantan provinces, as early as the first quarter of next year.

He said Indika is still in the running to buy a stake in Berau Coal and aims to buy as much as 100% of the company. People with knowledge of the matter have previously said that financial services company PT Recapital Advisors has been selected as the preferred bidder for Berau Coal ahead of Indika and other bidders. A decision on the sale is expected this week.

Indonesian holding company PT Armadian Tritunggal and Netherlands-based firm Rognar Holding B.V. plan to sell part of all of their stakes in Berau Coal. The two hold a combined 90% of the company and Japan's Sojitz Holding Corp. holds the remaining 10%. If possible, Indika aims to buy the entire company including the stake held by Sojitz, Wardhana said.

Indika plans to use some of the proceeds from its planned global bond deal to fund the potential acquisitions, Wardhana said. He said 22% of the funds raised from the bond sale will be set aside for acquisition and investment purposes, but didn't elaborate further.

Indika is in the process of bookbuilding and is expected to price about $230 million of global bonds this week, a person familiar with the matter said earlier Wednesday. Indika is looking to pay yields of around 9.75% on the senior secured debt, which has a seven-year tenor with a call option after four years, and will be issued through its unit, Indo Integrated Energy II B.V., the person said.

-By Linda Silaen, Dow Jones Newswires; 62 21 3983 1277; Reuben.Carder@dowjones.com