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PT Adaro Energy Tbk is delighted to announce that on May 28th, 2012in Jakarta, it entered into an option to provide a convertible loanfor a period of three years to acquire a controlling interest incoal miner PT Bhakti Energi Persada and an option to acquire themajority shares from the controlling shareholders of BEP. AdaroEnergy will have full control of the management, operations and allthe funding of BEP from the date of the signing of the Options. Mr Garibaldi Thohir President Director said "We are delighted withthe BEP Options we have signed. We feel BEP has excellent potentialto help us achieve our main goal of generating substantialsustainable long-term value from Indonesian coal. We worked for twoyears to negotiate a deal that is structured in a unique way tominimize risk to Adaro. While we are excited with the BEPopportunity, we must also emphasize that we will use our bestjudgment before injecting any funds to develop the asset." Key success factors such as market readiness, receiving requiredpermits from the government, land availability, social andcommunity support, and completing engineering and geologicalstudies must first be in place before any large capitalexpenditures will be deployed. President Director Mr Thohir added that "Our investors should nothave the perception that once the Options are signed, we willimmediately deploy capital to fund BEP. We are entering into theseOptions to properly assess an opportunity, while minimizing therisk to Adaro's capital. We want to ensure both the acquisitionrisks and the execution risks are addressed well in advance." BEP which was established in 2002, owns seven low grades thermalcoal licenses in the District of Muara Wahau, East Kutai Regency,East Kalimantan. BEP also owns two transport businesses in EastKalimantan, which own the hauling road that will be used totransport BEP's coal to the seashore. The seven concessions formone very large contiguous thermal coal deposit. SRK Consulting Pty Ltd estimated BEP's concessions to have JORCcompliant total resources of 9.53 billion tonnes. In 2010, AdaroEnergy hired Marston, an international mining consultant firm outof St Louis Missouri, USA, to conduct a mining and developmentstudy, which verified certain technical assumptions used by SRK intheir 2008 and 2009 JORC resource reports.Marston's estimate ofinsitu coal tonnages was essentially the same as the SRK estimateas the difference was within acceptable limits. The Option Agreements give Adaro Energy two options to acquire BEP.It is a unique structure designed to minimize the risk to AdaroEnergy. Option One provides Adaro the option to lend up to USD 500million to acquire 51% equity in BEP over a period of three years.Adaro can make a decision to convert the loan into equity at theend of the three year period. Option Two also has a three year maturity and was signed with PTPersada Capital Investama, PT Triputra Investindo Arya and thedescendants of the late Mr. Winarto. PCI and TIA each have a30.787% stake in BEP and combined with the 18.216% Winarto familystake, own 79.8% of the equity of BEP. Option Two provides Adaro aright to acquire shares held by the controlling shareholders of BEPin exchange for 2,381.7 million shares of Adaro Energy. BothOptions are only options for Adaro Energy and not its obligations. PCI and TIA are owned by two of Adaro Energy five key shareholders,Mr Benny Subianto and Mr Teddy Rachmat. Adaro Energy is 63% held byfive key shareholders and no single shareholder has a controllinginterest of Adaro Energy. In June 2011 in an unrelated transaction,Adaro Energy acquired 10.22% of BEP for USD 66 million from thirdparty minority holders. Source - PT Adaro Energy Tbk. We are high quality suppliers, our products such as Acrylic Display Shelves Manufacturer , Garment Display Rack for oversee buyer. To know more, please visits Acrylic Pop Display.
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