UFS's Golden Energy pursuit hits snag

FORESTRY and pulp producer United Fiber System's (UFS) proposed acquisition of a 67 per cent stake in Indonesia's Golden Energy Mines Tbk (Golden Energy) has been plunged into doubt because of a failure to meet certain conditions relating to the deal.

UFS had entered into a share purchase agreement (SPA) last July with PT Dian Swastatika Sentosa Tbk (DSS) to purchase the Indonesian company's 67 per cent stake in Golden Energy, the holding company of several Indonesian coal-mining firms, for S$1.88 billion, as well as a 5 per cent bonds issue, worth more than S$45 million, which was announced in August 2013.

UFS and DSS had originally agreed in the SPA that the long-stop date for the proposed DSS acquisition should be no later than Jan 31, 2014, but, according to a UFS statement to Singapore Exchange on the specified date, not all the conditions relating to the deal had been satisfied or waived, causing the long-stop date to lapse.