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Mitra Investindo's acquisition of Benakat Oil stake on hold
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A backhoe loads granite rocks onto a heavy duty truck at PT Mitra Investindo's mining site. (Courtesy of http://www.mitra-investindo.com//-)
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onstruction and mining company PT Mitra Investindo must put on hold its plan to buy a 23.44 percent shareholding in Benakat Oil, as it failed to meet the minimum quorum for the extraordinary general meeting to get shareholder approval.
The company had planned to acquire the shares from PT Pratama Media Abadi for Rp 71.37 billion (US$5.41 million). Mitra Investindo has prepared Rp 53.92 billion from its internal cash reserves and the remaining Rp 17.45 billion through equity-swap.
"As we will use a significant amount of equity, the minimum quorum [for approving the plan] was two-thirds of the shareholders, compared to the normal quorum of 50 percent plus one," Finance Director Yoyong told thejakartapost.com on Thursday in Jakarta.
Through the transaction, he explained, Pratama would take a controlling ownership in Mitra Investindo. The publicly listed company will launch the second attempt to hold a general meeting with the same agenda three weeks from now.
Apart from Pratama, the shareholders of Benakat Oil are PT Benakat Integra, holding 55.05 percent, and Goldwater Indonesia Inc (21.51 percent). Singapore-based Interra Resources Ltd owns Mitra Investindo and Goldwater Indonesia. Thus, Interra will indirectly own 44.95 percent of shares in Benakat Oil.
Saratoga Investama Sedaya, owned by Edwin Soeryadjaya and Sandiaga Uno, holds a 17.81 percent stake in Interra. Meanwhile, Pratama Media Abadi is affiliated with Recapital Group where Sandiaga is the co-founder. (ags)
