Jakarta, CNBC Indonesia – A mining company owned by the Northshtar Group, PT Delta Dunia Makmur Tbk (DOID), officially acquired a coal mining company owned by Downer EDI Limited, Australia for US$ 99 million or around Rp 1.42 trillion assuming an exchange rate of Rp 14,365 per US$.
The acquisition transaction was carried out on December 17, 2021 through a subsidiary of the company formed in Australia,
BUMA Australia Pty. Ltd. (BUMA Australia), whose shares are 100% owned by BUMA. With this transaction, all the conditions in the conditional agreement signed on October 11, 2021 have now been fulfilled.
This transaction includes the transfer of assets, employees, employee benefit liabilities and Mining East contracts from Downer to BUMA Australia have been completed reflecting an acquisition cost of A$139 million, equivalent to US$99 million.
“The transaction value represents a material discount from a book value of >A$200 million. The transaction was fully funded by a Mandiri bank loan facility, which was withdrawn in July 2021,” said DOID management, in an official statement, quoted Monday (12/20/2021) .
The Mining East business segment includes an experienced management team in Australia, which will complement the capabilities of BUMA and the company. This will also further strengthen the company’s book contracts, with the addition of a Tier 1 client. Mining East has a production capacity of approximately 160 million bcm for overburden removal, of which approximately 130 million bcm have been contracted, and 10.5 million tonnes of coal, used to serve thermal and coking coal concessions.
Mining East’s portfolio consists of 4 mine sites in Queensland owned by world class customers. In recent years, Mining East has recorded annual revenues of approximately A$510 million. Mining East is also exploring various projects that can support the growth of the business in the future.
The completion of the transaction marks BUMA’s entry into the coking coal industry, which will be BUMA’s first step in diversifying, as well as expanding outside of Indonesia.
This will provide the ability for BUMA and the company to explore potential future mining projects, both in Indonesia and in Australia.
“This transaction will add value and increase the opportunities for the Company’s business group to seize opportunities for growth,” said management.
(sys / hps)
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