Shareholders in leading Indonesian coal conglomerate PT Bayan Resources have voted overwhelmingly in favour of the proposed sale of the Pakar Coal Project to international coal producer Kangaroo Resources.
The shareholder approval, which was obtained at a general meeting in Jakarta on Tuesday, June 7, clears one of the final remaining conditions required for ASX-listed Kangaroo to complete this company-transforming transaction.
The only remaining condition is approval by Kangaroo shareholders with Kangaroo scheduled to hold its own general meeting in Perth, Western Australia, on June 13.
Under the transaction, Kangaroo is acquiring the project from Bayan in return for the issue of 2.305 billion new shares.
Kangaroo’s managing director Mark O'Keeffe says “This is a great result which paves the way for Kangaroo to approve the Pakar acquisition at its own general meeting and to complete this transformational transaction.
“The acquisition of Pakar and establishment of a strategic and operational alliance with Bayan Resources represent company-changing events for Kangaroo. We have no doubt that the company is on the verge of moving into a new era as a leading mid-tier mining company.”
PT Bayan Resources is a leading Indonesian-focused coal producer which is listed on the Indonesian Stock Exchange. Bayan produced about 11.8 million tonnes of coal in 2010 from six projects, making it one of Indonesia's largest coal producers. In addition, Bayan owns the Balikpapan Coal Terminal, one of Indonesia's largest coal terminals, as well as an innovative floating transfer station. Bayan is also the joint venture partner with White Energy in a coal beneficiation plant in East Kalimantan.