Tata Power buys 26% of Indonesian coal producer Baramulti Sukses Sarana
Tata Power has bought a 26 per cent stake in Indonesian coal producer PT Baramulti Sukses Sarana Tbk (BSSR), which owns about 1 billion tonnes of coal resources in the South East Asian country, for an undisclosed amount. The deal, which comes five years after it struck a billion dollar deal in Indonesia, would further help the power producer to secure raw material for its thermal plants.
The deal has been routed through its 100 per cent subsidiary Khopoli Investments Limited. PT Antang Gunung Meratus (AGM), a wholly owned subsidiary of BSSR and BSSR together own approximately 1 billion tonnes of coal resources in South and East Kalimantan in Indonesia. BSSR has listed its shares at the Indonesian Stock Exchange on November 8.
Earlier, Tata Power had signed a long term coal supply agreement with AGM.
Tata Power had earlier picked 30 per cent stake each in PT Kaltim Prrima Coal and PT Arutmin in the country for $1.1 billion from coal giant Bumi Group.
"This acquisition would aim to support our power generation projects in select geographies, to be developed over the next few years," Anil Sardana, managing director at Tata Power, said in a statement.
(Edited by Prem Udayabhanu)