Bloomberg News

Straits Asia Has No Information About Formal Offer for Stake

January 30, 2009

Straits Asia Resources Ltd. said it hasn’t been informed about any formal offer for a stake its parent was considering selling in the Singapore coal producer.

Noble Group Ltd. and PT Indika Energy Tbk were among companies interested in bidding for the coal producer, Reuters said, citing unidentified people. Bids for the 47.1 percent stake are due by the end of the month, the news agency said.

“Straits Asia is aware of various pres reports concerning parties who may be interested in acquiring a shareholding,” the company said in a statement to the Singapore stock exchange. “But Straits Asia has not been informed if there has been any formal expression of interest.”

The global credit crunch and a collapse in commodity prices are forcing mining companies to sell assets to raise cash. Australian parent Straits Resources Ltd. said Dec. 4 it received approaches from potential buyers for its stake in Straits Asia.

Straits Asia surged 14 percent to close at 94 Singapore cents today, prompting a query from the exchange and taking its market value to S$1.03 billion ($682 million). Straits Resources, which produces copper and gold, rose 12 percent to A$1.06 in Sydney trading.

Noble’s officials couldn’t be reached for a comment. Azis Armand, finance director at PT Indika Energy, couldn’t be reached for comments. Noble is a Hong Kong-based commodity supplier and Indika Energy is a shareholder in Indonesia’s third-largest coal mining company.

To contact the reporter for this story: Luzi Ann Javier in Singapore at ljavier@bloomberg.net

To contact the editor responsible for this story: Teo Chian Wei at cwteo@bloomberg.net


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