The Jakarta Globe reported that heavy equipment distributor United Tractors said it had agreed to the terms of its 100% acquisition of Bornoe Berkat Makmur, at a price of USD 51 million.

The company, through its unit Tuah Turangga Agung, signed a sale and purchase agreement in Jakarta last week.

Borneo currently controls a 60% stake in Piranti Jaya Utama, which holds a coal concession area of 4,800 hectares in Kapuas, Central Kalimantan.

Mr Sara Loebis, corporate secretary of United Tractors, said the company will finance the acquisition with its own funds, using some of the proceeds from its limited public offering.

United Tractors last year purchased 60% stakes in two other coal miners, Duta Nurchya and Duta Sejahtera.

A unit of Astra International, United Tractors is Indonesia’s largest heavy equipment distributor.

Source - thejakartaglobe.com

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