State-controlled building firm Wijaya Karya (WiKa) closed the aqcuisition of a 100% stake in another state-controlled company, Sarana Karya. The latter is a company in Indonesia's Buton island that produces asphalt, according to Jakarta Globe.
WiKa corportate secretary Natal Argawan said on Friday that State Enterprises Minister Dahlan Iskan inked a sales and purchase contract that transferred the Indonesian government's stake in Sarana to Wika on December 30. Iskan is acting as the state's representative in the said deal, the report detailed.
Natal said in the Friday statement: "The company plans to use internal cash to acquire Sarana Karya."
The transaction is expected to support WiKa's expansion into toll roads. The deal is also expected to help the company secure asphalt for any road-related projects. The plan to acquire Sarana was first announced by WiKa in 2012, the report stated.
Based on WiKa's previously announced working plan, the firm plans to turn a 30-hectare Buton property into an asphalt facility operated by Sarana. WiKa also plans to allot as much as $21 million for the development of the said plant. The facility is expected to begin production by 2015, Jakarta Globe reported.
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