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Geo Energy Resources to invest in online e-commerce portal in Indonesia

INDONESIAN coal mining group Geo Energy Resources Limited has set up a new unit to invest in a controlling equity stake in an online e-commerce portal in Indonesia, marking the group's first foray into non-coal related business since its establishment in 2008.

The unit, PT Geo Online Indonesia (Geo Online), was incorporated with an authorised capital of 10 billion rupiahs (S$1 million) and an issued and paid-up capital of 2.5 billion rupiahs, and will engage in trading, e-commerce, information technology and communication businesses.

The proposed investment will enable the group to gain access to an e-commerce platform and allow it to capitalise on Indonesia's fast-growing demand for online shopping with a growing Internet consumer base in Indonesia.

The group is in discussion on the proposed investment and an appropriate announcement will be made later. Discussions are still at a preliminary stage, it said in a Singapore Exchange filing on Tuesday morning.

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There is no certainty that the proposed investment will take place and securityholders and potential investors are advised to exercise caution when dealing in the securities of Geo Energy.