Korea Electric Power Co. (Kepco), South Korea’s largest utility company, has announced that it is to acquire a 20% stake in Indonesian coal producer, PT Bayan Resources.
As part of the US$ 515 million deal, Kepco will buy 667 million shares for 7000 Indonesian rupiah each.
The stake will provide Kepco with 2 million tpa of coal from 2012, and 7 million tpa from 2015. This will ensure that 34% of the company’s coal requirements are sourced from its own assets, compared to the current 24%.
In its regulatory filing, Kepco said: “The firm expects this investment to help ease difficulties in securing and shipping Indonesian coal as Bayan Resources owns onshore and offshore terminals.”
The deal follows the company’s decision to buy a mine in Australia from Anglo American plc for AU$ 403 million (US$ 357 million) earlier this month.
Read the article online at: https://www.worldcoal.com/coal/23072010/kepco_acquire_stake_in_bayan_resources/