TEMPO.CO , Jakarta – The Sinar Mas Group issuer , Golden Energy and Resources Ltd (GEAR) through its subsidiary Stanmore Resources Ltd, has completed the acquisition of 80 percent of the shares in the Australian coal mining company, BHP Mitsui Coal Pty Ltd (BMC). The acquisition value reached US$ 1.2 billion or equivalent to Rp. 17.37 trillion (assuming an exchange rate of Rp. 14,477).
GEAR Executive Chairman Fuganto Widjaja said that this acquisition marked a milestone in the company’s transformation. BMC will complement the company’s current metallurgical coal platform with high quality, low cost and long mine life.
“With this successful completion, GEAR will become one of the largest metallurgical coal producers in the world through Stanmore and expects a significant contribution from this segment going forward,” he explained in an information disclosure on the Singapore Stock Exchange, Tuesday, 3 May 2022.
Mitsui Coal The funds issued by Stanmore on completion of this acquisition came from Stanmore’s cash, following a successful pro-rata rights offering or rights issue in March 2022. Stanmore and all of its subsidiaries have disbursed debt facilities including the acquisition payable facility of US$ 625 million.
Full funding is available for consideration of the acquisition and adjustment of the completion of the acquisition of approximately US$ 200 million for working capital. This was as a result of BMC’s higher working capital balance obtained on settlement mainly driven by a stronger market.
The increase in BMC’s working capital translates into a healthier balance sheet and cash position in the post completion of the BMC acquisition, or more than Stanmore expected when the sale agreement was signed.
Stanmore Resources Ltd CEO Marcelo Matos said the completion of this transaction marked an important milestone in the company’s history. PCI metallurgy and coal prices remain at historically high levels and Stanmore will benefit from these prices with an additional 10 million tonnes of metallurgical production.
For information, this acquisition has been approved by the shareholders of GEAR’s parent company, namely PT Dian Swastatica Sentosa Tbk. (DSSA) on 23 February 2022. The acquisition of BMC is promising for the Sinarmas group, because BMC has metallurgical coal assets located in Queensland, Australia. The mine consists of South Walker Creek and the Poitrel mine. The total production of metallurgical coal is around 10 million per year and the total reserves are more than 135 million tons.
Not only that, BMC’s assets have also been added to the Red Mountain infrastructure and the development of the Wards Well well. All are located in Queensland, Australia. Previously, DSSA’s management hoped that the acquisition of BMC would strengthen its position as a business player in the metallurgical coal business in Asia and Oceania, which in turn could have a positive impact on shareholders.
Source: bisnis.tempo.co.sg May 4, 2022