Jakarta-Plan PT Barito Pacific Tbk (BRPT) expand its business into coal sector continues to unfold. This petrochemical company has set aside U.S. $ 50 million to acquire new coal mines and other assets.

The funds are sourced from the sale of 7.13% ownership stake in PT Chandra Asri Petrochemical.Tbk (TPIA) to the SCG Chemicals Co.. Ltd. Of the transaction, BRPT earned U.S. $ 103.87 million or Rp 934.83 billion.

Agustino Sudjono, Head of Investor Relations BRPT, said, the goal BRPT plans to diversify the business is to reduce dependence on petrochemicals sector. During this time, the financial performance BRPT highly dependent on the petrochemical business.

By the end of the third quarter of 2011, the petrochemical sector accounted for Rp 15.02 trillion, or 99.4% of total revenue reached BRPT
Rp 15.1 trillion. "Asset Chandra Asri is large, so its contribution to the BRPT too high," he said.

Addiction is a fairly big risk. Therefore, the petrochemical business cycle is always up and down quickly so feared disturbing BRPT income. For that, BRPT intend to acquire new assets, including coal and other energy sectors, in order to reduce the risk portion of the petrochemical business.

However, the company is looking diversified into coal sector can not be done in haste. Feasibility studies, licensing to production preparation will certainly take time. Agustino was not willing to disclose when BRPT really will acquire coal mines.

Management BRPT also reluctant to reveal mine who became incarannya. "Yes, if we see today, most of the mines are in the Kalimantan region," added Agustino.

Looking for strategic investors

Even so, BRPT wiggle room to explore the coal sector more open quasi-reorganization as approved in General Meeting Extraordinary Shareholders that took place yesterday.

Quasi-reorganization is done to remove the deficit that reached Rp 5.76 trillion, as of June 2011. The deficit was the result of accumulation of restructuring after the financial crisis of 1998.

BRPT close the deficit earlier in two ways. First, the company remove the deficit of Rp 1.13 trillion of the surplus assets after revaluation process. Second, BRPT cover the deficit of Rp 4.5 trillion through premium shares.

BRPT actually have a balance of Rp 5.8 trillion in capital. But worth Rp 1 trillion of balance it should not be used because it is goodwill. "After the quasi, we are more confident to develop the business. Moreover, the prospects are very good," said Agustino. BRPT hope quasi reorganization became effective in January 2012.

Nuvrial Prakasa, Royal Trust Principal Research Capital, assess, plan BRPT into the coal sector is actually reasonable, given the prospects are good. However, Nuvrial suggest BRPT seeking strategic investor and partner if really go into coal mining.

Partners are needed not only to increase the injection of capital, but also for the sake of getting the transfer of knowledge. "Strategic Partners can facilitate BRPT, which previously did not have coal-related businesses," said Nuvrial.

With the expansion of business, revenue BRPT increasingly diverse and not dependent on one sector. "Diversification will strengthen the company's growth prospects. This will be a positive response from investors," said Nuvrial.

BRPT stock prices, yesterday, ended down 1.22% to Rp 810 per share.