Business Times reported that catalist listed Sky One Holdings announced that it will enter the coal mining business in a USD 400 million reverse takeover deal.

Sky One, a Chinese logistics provider, will issue 1.6 billion new ordinary shares to the vendors of Energy Prima at USD 0.25 each. The vendors will hold 83.6% of Sky One after the deal.

Energy Prima owns Indonesian coal mining company PT Pilar Mas Utama Perkasa. It is the indirect owner of PT Rinjani Kartanegara.

Sky One said its existing businesses have experienced declining profitability and weak demand, and the proposed acquisition allows the company to enter a fast growing market.

The company's existing businesses will be sold to its chief executive and controlling shareholder Dicky Suen Yiu Chung for USD 6.9 million.

Shareholders will vote on both transactions at an EGM at a later date.

Source - www.com.sg

(www.coalguru.com)