JAKARTA. PT Energi Mega Persada Tbk (ENRG), a mining company owned by the Bakrie Group, has received permission from its shareholders to use more than 50% of its equity as collateral for Kinross International Group Ltd.
This was conveyed by ENRG's Board of Directors through the disclosure of information today, after an Extraordinary General Meeting of Shareholders (EGMS) on 16 June 2020.
Previously, ENRG planned to acquire shares of Mitsubishi Corporation in the Kangean PSC Block, East Java. With this acquisition, the total stake of ENRG and Kinross International in Kangean PSC Block will increase to 75%.
Syailendra S. Bakrie, Director and CEO of ENRG, acknowledged that ENRG had limited funds for acquisition. Therefore, the company is ready to use its equity as collateral. "Kinross uses its cash flow to repay the loan," Bakrie said.
According to idnfinancials.com data, ENRG's total equity until the end of the first quarter of 2020 was recorded at US$ 126.18 million, 18.92% higher than its record in 2019. (KR/AR)