Bukit Asam to acquire 30% Ignite Resources

Bukit Asam (PTBA IJ, BUY, TP: IDR11,200) is planning to acquire 25%-30% of Ignite Energy Resources, an Australian coal company that is able to convert brown coal into metallurgical coal and synthetic oil (syncrude). So far the value of the acquisition has not been mentioned and the process is estimated to complete in 3Q14. On the other hand, PTBA will also make a joint venture in coal mine and power plants in Myanmar & Vietnam by next year. PTBA will invest around US$900m in Vietnam for 2×110 MW & 2×200 MW coal-fired power plants.