Geo Energy to buy stake in two Indonesian shipping firms for $127.5m

Geo Energy Resources has announced the proposed acquisition of a 51 per cent equity interest in two integrated Indonesian shipping companies, Trans Maritim Pratama (TMP) and Bahari Segara Maritim (BSM), for a total consideration of approximately $127.5 million. The Singapore-based company stated the move will complement its business model and strengthen its vertical integration.

The acquisition will allow the group to build up a supporting fleet for the increased production at its Triaryani coal mine and operations at its Marga Bara Jaya jetty, improving delivery certainty and reducing transportation costs. TMP and BSM specialise in logistics for commodities and own a combined fleet of 54 vessels, comprising 27 tugboats and 27 barges with transport capacities ranging from 5,000 to 10,000 tonnes.