ABM Investama to divest 25% unit shares through MCB

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JAKARTA – Indonesia investment company PT ABM Investama Tbk (ABMM) said it would divest up to 25 percent stake in its power services provider PT Sumberdaya Sewatama to several strategic investors through a mandatory convertible bond (MCB) scheme. Previously, the company had chosen the same scheme when divesting Sewatama’s shares to PT Indonesia Infrastructure (IIF).

The MCB was valued at Rp300 billion and could be converted into 3 percent shares. ABM Finance Director Adrian Erlangga said, the company is in serious talks with prospective local and foreign investors from Japan and Singapore “We are offering them Sewatama’s shares. The company will become the main driver of all ABM’s core projects in coal-powered plants,” said Erlangga.

In 2015, ABM announced a decision to push its non-coal-mining business with a planned investment of around $500 million to significantly reduce reliance on volatile coal prices. The company had said it aimed to build power plants with capacities of between 1,000 and 1,500 MW in the next five years, in line with the government’s ambitious plan to provide 35,000 MW by 2019. Under the plan dubbed Vision 2020, the firm expects to see revenue contribution from coal mining down 50 per cent in 2020 from around 60 to 70 per cent last year. (*)

 

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Source: The Insiderstories
ABM Investama to divest 25% unit shares through MCB

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