May 30 () - PT Adaro Energy, Indonesia's No.2 coal miner, said on Wednesday it had agreed to provide a loan worth up to $500 million that can be converted into a controlling stake in low-grade coal miner PT Bhakti Energi Persada.
Adaro will get a 51 percent stake in Bhakti if it exercises the option over the next three years and has another option to increase the stake further, the company said in a statement published via the Indonesia stock exchange website.
Bhakti was valued at $854.3 million when the transaction was signed, it said.
Bhakti, based in Indonesia's East Kalimantan province, has total coal reserves of an estimated 5.7 billion tonnes and is controlled by Benny Subianto and Teddy Rachmat, who also own shares in Adaro.
Bhakti's reserves have an average calorific value of 5,300 and gross-as-received (GAR) of 3,400 to 3,500.