Six years ago, then SGX-listed Dayen Environmental agreed to acquire ATPK Resources from Hopaco Properties Ltd. Goi Seng Hui, then director of Dayen, controlled 9.62% shares of ATPK Resources before the proposed acquisition. Dayen was also granted rights to mine up to 5 million tons of coal. The deals, however, collapsed few months later.
Dayen initially entered into exploitation and marketing agreement with PT Modal Investasi Mineral (MIM), 96.77% shares were controlled by ATPK, wherein MIM granted Dayen the rights to mine up to 5 million tons over seven years at MIM’s Damanka mine, Kalimantan with fixed royalty payment of US$5 per ton.
ATPK, parent company of PT Modal Investasi Mineral (MIM), however, later on informed Dayen that MIM was unable to perform its obligations under the mining rights agreement (MRA) signed in December 2007 where Dayen would get the rights to mine, remove, and transport up to 5 million tons of coal from PT Damanka Prima’s coal mine site in Kalimantan. Damanka was a subsidiary of MIM.
But according to Dayen, ATPK was committed to entering into a new contractual agreement with Dayen. “The company is seeking legal advise to protect and enforce its rights and legal position under the MRA vis-a-vis MIM, ATPK, and Damanka,” Dayen told SGX that time.
Later on, as we have reported earlier, the company involved in various legal disputes. Last year, Ontario Superior Court of Justice granted the petition that PT ATPK Resources Tbk filed against Hopaco Properties Ltd.. The verdict read on Sep. 17, 2013 revealed that ATPK had also sued Diversified Energy and Resource Corp (DEAR). ATPK previously filed the petition to the Canadian Court and registered two judgments of the High Court of The Republic of Singapore. The first judgment in June 2010 declared that Hopaco should return ATPK’s shares to the mining company. The second judgment in December 2011 ordered Hopaco to pay ATPK Rp110 billion.
The case began with ATPK accusing Hopaco of acquiring its 112 million shares through a “financial engineering scheme” and failed to pay for the transaction. In July 2008, Hopaco transferred 85.8 million of ATPK’s shares to DEAR. ATPK subsequently brought Hopaco to the Singapore Court and received favorable ruling in 2011. Afterwards, ATPK demanded the Ontario Court to register and enforce the Singapore Court’s judgment. In the petition, ATPK also sued DEAR for declaring that it held 85.8 million of ATPK’s shares. In its ruling, the Ontario Court declared that ATPK is entitled to a judgment against Hopaco pursuant to section 121 of the Courts of Justice Act for payment of an amount in Canadian currency. Nevertheless, the Court turned down the lawsuit against DEAR with the view that DEAR’s not the disputing party in the Singapore proceeding.
The case is not stopped there. Hopaco has recently filed lawsuit against ATPK Resources in South Jakarta District Court. The Court has summoned ATPK on January 3rd, 2014 to show up in the court room on Thursday, January 9, tomorrow. Hopaco, which once controlled around 30% shares in ATPK, also filed lawsuit against Mr Wasisto Budiharsoyo, former director of ATPK, in the case.
Outside the court process, ATPK has conducted various actions. The company, for example, divested its ownership in five subsidiaries, including 70% shares in PT Saptajaya Menjak Sengewari for Rp420 million to minority partner at PT Saptajaya; 70% shares in PT Damanka Prima for Rp9.72 billion to minority partner at Damanka; 70% shares in PT Tuhup Coal Mining for US$1 million, also to its minority partner. The company is also in the process of divesting shares in PT Sarana Mandiri Utama, PT Wahana Bumi Mulia, PT MIM Nikelindo, PT MIM Coal Power, PT Otoma Global Mitra, and PT Energi Gabus Pratama.
On the other hand, ATPK indirectly acquired assets of PT Pacific Prima Coal (PPC) through PT Mega Alam Sejahtera (MAS) and rights issue of 4.43 billion shares to raise Rp1.06 trillion. As a result, PPC now controls 82.7% shares in the enlarged share capital (5.76 billion shares) of ATPK. Strange because PPC was actually granted rights to conduct land acquisition in MAS’ concessions. It is not clear of how much PPC actually spent to acquire the land.
Way too complicated for many. Still, for coal players, it is important to see whether ATPK can reach its coal production target of 3 million tons this year and 3.2 million tons next year.
At the current market price, ATPK Resources has market capitalization of Rp1.6 trillion. Bigger than Toba Bara Sejahtera (TOBA), which produces more than 5 million tons per annum?
DISCLAIMER: NO POSITION IN STOCKS MENTIONED IN THIS ARTICLE
