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Indika sells 70% stake in Petrosea to diversify away from coal
Publicly listed coal miner PT Indika Energy has sold US$146.58 million worth of shares in publicly listed engineering services company PT Petrosea as the miner seeks to diversify its business.
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Excavators owned by PT Petrosea are shown in this undated photo. (Courtesy of Indika)
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ublicly listed coal miner PT Indika Energy has sold its stake in publicly listed engineering services company PT Petrosea as the miner seeks to reduce its exposure to coal businesses.
Indika Energy, one of the country’s coal giants, sold all of its 704.01 million shares, accounting for nearly 70 percent of the total shares, in Petrosea. The company estimated the sales to reach US$146.58 million.
Petrosea, which provides contract mining services, will therefore no longer be a subsidiary of Indika Energy and excluded from the company’s consolidated financial statements.
Credit ratings agency Fitch Ratings reported on March 3 that Indika Energy’s divestment of the shares was expected to have a limited credit impact. The sales will improve the coal giant’s liquidity, thus supporting its investment plans and reduce its debt for this year.
