Indonesian Firm Makes Move From Entertainment To Coal Mining

Ivan Dasa Saputra

Eatertainment International, an entertainment and restaurant company, is switching its business focus to the coal sector, investing Rp 283 billion ($30.3 million) to acquire two mining firms.

Eatertainment President Hendra Surya said the acquisition of the two mining firms, one in Sumatra and the other in Kalimantan, marked the company’s switch in core business from food and entertainment to mining.

The company, Hendra said, will take a 99.12 percent stake in Nagamas Makmur Jaya, which indirectly has a 39 percent effective stake in International Prima Coal, a venture between the Rajawali Group and Bukit Asam. The acquisition was valued at Rp 146 billion.

“In the other one, we will place new shares issued by T Rajawali Resources that owns 85 percent of the shares in Triaryani as a coal concession holder in South Sumatra of 2,100 hectares in surface, at a value of Rp 137 billion,” he said during a company public expose in Jakarta on Monday.

To enable those acquisitions, Hendra said the company will hold a rights issue of 820 million new shares to raise funding of some Rp 410 billion. The right issues is slated to be offered on July 2-6.