Mining contractor firm PT Pamapersada Nusantara (Pama), subsidiary of major heavy equipment distributor PT United Tractors (UNTR), has shifted its ownership within several companies in an effort to focus on its own core business
ining contractor firm PT Pamapersada Nusantara (Pama), subsidiary of major heavy equipment distributor PT United Tractors (UNTR), has shifted its ownership within several companies in an effort to focus on its own core business.
Pama shifted all of its ownership in Asmin Bara Bronang (ABB), Asmin Bara Jaan (ABJ), Prima Multi Mineral (PMM) and Kadya Caraka Mulia (KCM) to sister company Tuah Turangga Agung in a transaction mechanism called inbreng, with total shares estimated to be worth Rp 2.77 trillion (US$235.95 million).
'But no actual money was involved in the transaction because it was merely a change in ownership status,' United Tractors corporate secretary Sara K. Loebis said.
The four companies ' ABB, ABJ, PMM and KCM ' are holders of mining concessions in Kalimantan, while Tuah Turangga currently runs its operations in mining and trading.
The transaction, signed on Aug. 29, made Pama gain United Tractor's 60 percent ownership in Tuah Turangga in exchange for Tuah Turangga's stakes in the four companies, according to a document published on the Indonesia Stock Exchange (IDX) website on Tuesday.
The new ownership structure is expected to enable Pama to focus on its mining contractor business and let Tuah Turangga handle the rest of the mining activities, according to Sara.
'Pama and Tuah Turangga were given the leniency to acquire mines and in the end, both of them had mines. The shift is our way to restructure the business, or spruce things up,' she said.
The statement showed that since the shift, ABB is 75.4 percent controlled by Tuah Turangga, 15.4 percent by PT Andalan Teguh Berjaya and 9.2 percent by PT Mandiri Sanni Pratama.
Tuah Turangga also controls 75.4 percent of shares in ABJ; the rest are controlled by Andalan Teguh Berjaya and Mandiri Sanni Pratama, with 13 percent by and 11.6 percent, respectively.
Meanwhile, for PMM, shareholders consist of Tuah Turangga with 99.8 percent and United Tractors Pandu Engineering with 0.2 percent.
The last firm, KCM, saw its major shareholder change to Tuah Turangga, with 99.9 percent, while United Tractors Pandu Engineering maintains its 0.1 percent ownership.
Financial contribution from all the firms would remain the same as their performance had been consolidated into United Tractors' own report, according to Sara.
United Tractors, part of diversified conglomerate PT Astra International (ASII), has previously stated that Pama would still be a key contributor to its business despite Pama's current business slowdown.
Pama made up for 59 percent, or Rp 16.2 trillion, of United Tractors' revenues, the latter's first-half financial report showed. United Tractors itself has forecast that its revenues this year will not differ much from the Rp 51.01 trillion booked in 2013.
Shares in United Tractors, publicly listed on the IDX under the code UNTR, ended at Rp 22,225 apiece on Tuesday, up 0.2 percent from a day before. The stocks have gained 17 percent so far this year.
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