JAKARTA: PT United Tractors Tbk (UNTR), through its unit PT Tuah Turangga Agung (TTA), has acquired coal producer PT Suprabari Mapindo Mineral (SMM) in a transaction valued at Rp 600 billion ($45.72 million).
United Tractors corporate secretary Sara Loebis said, TTA purchased 80.1 per cent stake in SMM from Vasse Holdings Pte Ltd, Saiman Ernawan, Eddy Winata, and PT Cipta Olah Alam Lestari. The agreement was signed on October 11. “SMM has not been producing yet. It is in preparation to start next year, when it will produce maximum 1 million tonnes of coals per year. Gradually it will reach its full capacity of 4 million tonnes per year,” said Sara in Jakarta, as quoted by local media Investor Daily.
United Tractors is a subsidiary of PT Astra International Tbk (ASII), one of the largest conglomerates in Indonesia with businesses expanding across automotive, insurance, heavy equipment, real estate among others. The company, which had previously operated exclusively in the heavy equipment business, recently broadened its reach into other sectors such as construction and concrete producing. In 2015, United Tractors recorded consolidated net revenue Rp49.3 trillion or 7 per cent lower compared to Rp53.1 trillion in 2014.
The fall in coal price has led the company to assess the carrying value of its coal mining properties and other related assets. The net impact of the impairment loss charged to profit after tax was Rp2.6 trillion (2014: Rp1.5 trillion). These factors have led to a decrease in company’s net profit at Rp3.9 trillion, down 28% from Rp5.4 trillion in 2014.