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2261-2280 of 2995
By Jason Scott
March 23 (Bloomberg) -- PTT Pcl, Thailand’s biggest energy company, agreed to buy 60 percent of Straits Resources Ltd.’s controlling stake in Straits Asia Resources Ltd. for as much as $335 million, to add coal mines in Indonesia.
PTT International Co. will pay Straits Resources $220 million for the stake and a further amount of as much as $115 million, depending on “reserve upgrades” at a mine in Indonesia, the offer documents said. Because the deal involves a change of control in Straits Asia, the Bangkok-based company also made a takeover offer for the Singapore-based company.
Straits Asia supplies coal to Japan, Taiwan and South Korea from mines in Indonesia. Perth-based Straits Resources, which owns a 47 percent stake in Straits Asia, said Dec. 4 it received approaches from potential buyers for its stake.
“Coal represents an important long term diversification strategy and growth opportunity for PTT,” PTT said in today’s statement. “PTT will also benefit from the coal expertise of the management team who has been responsible for Straits Resources’s success and growth in coal.”
PTT offered 80.7 Singapore cents a share, 4.5 percent less that their last traded price for Straits Asia as part of the transaction, valuing the company at S$882 million ($583 million).
Straits Resources shares were halted from trade in Sydney.
To contact the reporters on this story: Jason Scott in Perth at Jscott14@bloomberg.net; Last Updated: March 22, 2009 20:28 EDT
Fishcake ( Date: 23-Mar-2009 08:54) Posted:
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Straits to sell stake in coal assets to PTT
STRAITS Resources will sell a 60 per cent stake in its Indonesian coal assets to Thailand's PTT International Co. for $US335 million.
The transaction will give PTT International – Thailand’s largest energy group - a 28.26 per cent interest in Straits’ Singapore-listed coal subsidiary Straits Asia Resources, which operates the assets, according to a document lodged on the Singapore Stock Exchange website.
Straits has been conducting a strategic review of its 47.1 per cent holding in Straits Asia since receiving a number of unsolicited expressions of interest for the stake.
The transaction will dilute Straits interest in Straits Asia to 18.84 per cent.
Straits Asia operates the Sebuku and Jembayan thermal coal mines in Indonesia, and holds an interest in a coking coal exploration concession in central Kalimantan.
COMPANY PROFILE and TECHNICAL CHART
The coal miner is also set to pick up a salt project in Australia from Straits after the completion of a sales and purchase agreement.
The transaction will be completed by PTT International purchasing a 60 per cent stake in Straits Bulk & Industrial, the holding company of Straits’ 47.1 per cent interest in Straits Asia.
PTT International said coal provides an important long term diversification strategy and growth opportunity for the company, with the Straits Asia purchasing providing a portfolio of producing assets.
The total cash consideration for the transaction involves an upfront payment of $US220 million ($319.03 million) and a performance payment of $US115 million ($166.76 million) related to reserve upgrades at the Sebuku mine.
Shares in Straits Resources were placed in trading halt on the Australian Stock Exchange today pending an announcement about a review of its stake.
Don't worry, who wants to have a pot of gold taken away for a song?
There is bound to be fierce competition. Just wait and see..
Fishcake ( Date: 23-Mar-2009 08:54) Posted:
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For those vested, you can now shout "HO SEH LIAO, LAH!!!!".
The most important thing is what have youdone to protect yourself if this happen???
what is your backup plan???
dcang84 ( Date: 20-Mar-2009 23:41) Posted:
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Ben is flooding the market with liquidity to force mortagae rates down n hopefully kickstart demand.The fear going forward is they may allow it to run a tad too long and if they don't drain excess liquidity fast, we could be seeing inflation creeping up. I dun know which is worse-recession or inflation. One thing is certain though we are screwed either way.
It's an aggressive move by Ben but I sure hope he has plan B when inflation starts to rear its ugly head. I dun know whether it is good for corporate America but I am of the view that these guys in Washington are making it alot worse than it already is. This is beginning to look like a bottomless pit.
cheongwee ( Date: 20-Mar-2009 20:23) Posted:
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Laulan ( Date: 20-Mar-2009 17:14) Posted:
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I think Ben is making an intelligent move...as the dollar is strong now, but a weak dollar is seen as a good thing for invester...America can sell..so going forward a weak US$ is good for corporate America at this crucial time...it may turn stock and economy around faster...increase in export do help the economy.
I think Obama and Ben is doing fine, of course, this is at the expense of foreigner like China...but China should know that the early US recover is better for their economy..so they can sell again to US..and solve their high unemployment..and this will be seen as temporary disadvantage to China..they should not object to what Ben is doing..
dcang84 ( Date: 20-Mar-2009 09:52) Posted:
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Thanks. Only just enough for coffee and lunch.
Thanks.
dcang84 ( Date: 20-Mar-2009 17:02) Posted:
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dcang84 ( Date: 20-Mar-2009 10:02) Posted:
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Laulan ( Date: 19-Mar-2009 11:02) Posted:
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cheongwee ( Date: 19-Mar-2009 23:44) Posted:
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This counter will make your money stalk...move your $ over to citi..or AIG...
This one can wait later...i believe this one liquidity isa a good sign...but that not now..why miss $$$$...go AIG..and citi.
Me got the other half of profit..that is Wall St money..casino money to roll...so i am not duly worried..am looking to next new low to go long...
louis_leecs ( Date: 19-Mar-2009 22:39) Posted:
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dcang84 ( Date: 19-Mar-2009 09:46) Posted:
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