Geo Energy inks deal to buy balance 34% of Borneo International Resources

COAL-MINING group Geo Energy Resources has entered into a conditional sale-and-purchase agreement to buy the remaining 34 per cent shareholding interest in Borneo International Resources Pte Ltd that it does not already own for US$25 million, the company announced on Dec 26.

Borneo International Resources indirectly holds an effective equity interest of 98.96 per cent in PT Sungai Danau Jaya (SDJ), which holds coal-mining concession in South Kalimantan, Indonesia.

Geo Energy noted that the proposed acquisition will allow it to collectively own the entirety of the 98.96 per cent stake in SDJ and hence to have greater effective control over SDJ, giving it more flexibility in expanding its business operations and increasing coal production levels.

In August last year, Geo Energy completed the acquisition of a 66 per cent stake in Borneo International Resources for US$55 million.

The mainboard-listed company closed 0.1 Singapore cent higher at 14.9 Singapore cents on Christmas eve.