Jan. 27 (Bloomberg) -- United Fiber System Ltd., a construction and wood products company, surged the most in more than eight years in Singapore trading after agreeing to swap shares in Indonesian coal producer PT Golden Energy Mines.
The stock rose as much as 71 percent to 4.8 Singapore cents, the biggest increase since May 2003, and traded at 3.9 cents at 3:10 p.m. local time. Before today, United Fiber had declined 49 percent in a year, compared with a 13 drop in Singapore’s benchmark Straits Times Index.
United Fiber will issue new shares equivalent to a 93 percent stake in exchange for PT Dian Swastatika Sentosa’s 67 percent holding in Golden Energy in a so-called reverse takeover, the Singapore-listed company said in a filing today. The transaction, valued by United Fiber at S$1.5 billion ($1.2 billion), will give Golden Energy a presence on the Singapore stock exchange, Southeast Asia’s biggest bourse.
The deal would “boost Golden Energy’s profile in becoming a regional coal company,” Hermawan Tarjono, Jakarta-based corporate secretary at Dian Swastatika, said by telephone. “By joining the regional market, under United Fiber, Golden Energy will be better known in the international investors’ community and it would be easier for them to tap investors in case they need to raise funding.”
Dian Swastatika jumped 5 percent in Jakarta trading to 11,600 rupiah at 2:14 p.m. local time. Golden Energy rose 1 percent to 2,625 rupiah.
Golden Energy has eight coal-mining concessions spread over 36,000 hectares in Indonesia’s South and Central Kalimantan and Sumatra island, according to its website. The projects have 849 million metric tons of proven and probable reserves.
Golden Energy’s market value is 15.3 trillion rupiah ($1.7 billion), while United Fiber’s market capitalization was S$97 million as of yesterday.
--Editors: John Chacko, Baldave Singh
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