Straits Resources says it is well-placed for acquisitions after selling a stake in its coal assets for $US335 million.
The transaction will give Thailand’s PTT International a 28.26 per cent interest in Straits’ Singapore-listed coal subsidiary Straits Asia Resources, which operates two thermal coal mines in Indonesia.
The base and precious metals miner had been reviewing its 47.1 per cent holding in Straits Asia since receiving a number of unsolicited expressions of interest for the stake in late 2008.
Straits chief executive Milan Jerkovic said today the part sale would provide the company with the funds to pursue potential acquisitions, particularly in precious metals, copper or bulk commodities.
“Straits will be well placed to look at attractive acquisitions at a low point in the cycle,” Mr Jerkovic told reporters on a conference call.
“While we don’t have anything specific in mind, copper and precious metals are probably the initial areas that we’ll look at."
Mr Jerkovic added that the company was looking at other uses for the funds, including a distribution to shareholders and the repayment of debt facilities.
Source: AAP
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